Indonesia, a major global supplier of liquefied natural gas (LNG), is requesting its overseas buyers to accept delays in some scheduled shipments as the nation grapples with a surge in domestic energy demand, Bloomberg reports.
The move is expected to further tighten the already strained global LNG market.
The Indonesian government has reportedly asked the nation’s LNG exporters to defer a portion of this year’s shipments, with one source indicating that Jakarta is seeking delays into 2026. This request comes as Indonesia prioritizes its gas output for domestic energy generation and to support downstream industries.
Sources familiar with the matter suggest that Indonesia may need to retain the equivalent of 50 LNG shipments for its own domestic consumption. This is a significant portion of the nation’s annual exports, which totalled roughly 300 cargoes last year, according to ship-tracking data.
While a spokesperson for the Indonesian energy ministry did not respond to requests for comment, the development highlights the growing pressure on LNG producers worldwide to balance export commitments with their own domestic needs.
Indonesia, the world’s sixth-largest LNG exporter, is not the first supplier to face this challenge. Egypt, traditionally an LNG exporter, has been importing shipments to supplement falling domestic production. Similarly, Malaysia is also reportedly considering taking more shipments to meet its internal requirements.
Energy and Mineral Resources Minister Bahlil Lahadalia emphasized earlier this week that Indonesia intends to prioritize gas output for domestic power generation and to support local industries. He also said the government is encouraging private sector involvement in new power plant projects.
This is not the first time Jakarta has taken steps to safeguard its domestic energy supply. In 2022, the government temporarily banned coal exports due to concerns about low supplies at power plants and the risk of blackouts. The same year, palm oil exports were also suspended to control local prices.
