JAKARTA Dec 6 Indonesia's liquefied natural gas
(LNG) exports are expected to drop 13.8 percent in 2013, to 274
cargoes, largely as a result of a drop in production at its
Mahakam block, a source at the country's newly established
interim oil and gas regulator (SKMigas) told Reuters on
"The problem is in the reservoirs. The capacity of the
reservoirs is no longer as was expected," said the source, who
declined to be identified.
Indonesia also plans to retain 32 cargoes next year compared
to 14 in 2012, the source said, to fuel the mushrooming domestic
power needs of Southeast Asia's largest economy.
LNG, a cooled form of the natural gas, allows the resource
to be shipped far from the rocks in which it is found, often to
Asian markets, where there is strong demand and it fetches a
Indonesia's LNG is shipped to Japan, Korea, the United
States and China.