Indonesia’s LPG Demand to Grow Despite Gas Pipeline Build-Out

LPG in World Markets

May 2019

Indonesia is expanding its gas pipeline network to supply natural gas to residential customers in a bid to curb the growing reliance on imported LPG which has been promoted through costly subsidy programs to shift from using kerosene. In 2018, higher gas consumption limited the growth in LPG demand and imports; however, with the LPG subsidies still being offered and geographical challenges in building a comprehensive gas pipeline network, LPG consumption will continue to increase in coming years.

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