Consumption of natural gas continues to increase each year, especially in the industrial sector in the process of down ressing production cost and enhancing machinery efficiency whereby to be more competitive against other nations. The reason of converting fuel energy (from Kerosene) to gas is that the price of gas is highly competitive, relatively stable and environmentally friendly.
In the last 5 years, total consumption of gas has been continuously increasing. In 2005 gas consumption reached 3,514 MMSCFD; one year later it went up to become 3,716,1 MMFCFD and in 2009 it was posted at 4,233.7 MMFCFC. Increased consumption of gas occurred especially in the sectors of fertilizer, electricity, and other industries.
In the fertilizer industry, gas consumption in 2005 was posted at 539.1 MMFCFD. In the electricity sector, the gas consumption of 2005 reached 480.1 MMFCFD, up to the level of 502.3 MMFCFD in 2007 and up again to become 634.3 MMFCFD in 2009.
As with other industries, in 2005 the gas consumption was at zero point, in 2007 it went up to the level of 128.7 MMCFD and in 2009 it increased to become 494.2 MMCFD.
The national strategy of gas management is to prioritize domestic consumption of gas, with consideration of infrastructure building, economic magnitude value of gas, and prioritizing in the following order effort to increase production output of oil-gas, using gas as raw material for fertilizer, using gas for power generator, using gas as fuel or raw materials for other products.
To promote efforts of gas distribution from source of supply to users, the Government enhances development and strengthening of pipelining network and distribution in the operational zones of PT National Gas Company (PT PGN) consisting of Service Center I in Western part of West Java, Eastern part of West Java, Notrhern part of Sumatra, and Sumatra-Java transmission.
Today the main projects underway are completion of the Bojonegara-Serpong distribution line, development of CNG station, development of Medan distribution network and development of Liquid Natural Gas Receiving Terminal in West Java and North Sumatra.