JAKARTA: Indonesia will consider new limits on exports of liquefied natural gas (LNG), a potential extension of trade curbs that have previously disrupted nickel to coal and palm oil markets.

The nation wants to ensure adequate domestic gas supply and aims to balance local consumption and export commitments, according to Jodi Mahardi, Indonesia’s deputy coordinating minister for maritime sovereignty and energy.

“We believe that this policy will have a positive impact in meeting domestic energy needs, encouraging domestic industry growth, and maintaining existing export commitments,” Mahardi said.

Planned policies do “not intend to reduce or stop gas exports as a whole,” he said.

Indonesia was the world’s sixth-largest LNG exporter last year, according to ship-tracking data.

The country has been moving to prioritise gas volumes for its domestic market to help feed economic growth and after supply chain snarls combined with a post-pandemic industrial rebound last year to trigger a global squeeze on fuel supplies.

New LNG export contracts or renewals of existing agreements could be prohibited to prioritise the needs of domestic consumers, Coordinating Investment and Maritime Affairs Minister Luhut Pandjaitan told a media briefing.

 - Bloomberg