Energy availability plays a very important role in accelerating the industrial sector, both as fuel and raw materials for the production process. So far, national natural gas production has contributed to maintaining the sustainability of domestic industry, although the use of natural gas to increase state revenue has also increased.
National natural gas production has remained relatively stable over the past five years. In the first half of 2024, natural gas production was recorded at 6,635.5 MMSCFD, not significantly different from the previous year. Of this production, 69.17% was used to meet domestic needs, with the remainder being exported.
The utilization of natural gas for industrial needs accounts for approximately 27%. The allocation has generally increased, reaching its highest proportion in 2023 at 30.83%. This increase is inseparable from efforts to support the structural transformation process, which is shifting focus from activities in the agricultural sector to the processing industry sector.
In addition to the domestic market, natural gas production is also aimed at increasing foreign exchange or state revenue through exports. These natural gas exports consist of two categories: direct exports as pipeline gas (6.21%) and exports as liquefied natural gas or LNG (24.61%).
The strong push and pull of natural gas utilization for domestic industry and export markets makes the use of natural gas for other needs very dynamic. This includes the proportion for electricity, city gas needs (households, hotels, restaurants, etc.), motor vehicle fuel, and raw materials for fertilizer, petrochemicals, or others. Utilization for vehicle fuel and city gas accounts for the smallest portion, less than 1%.
