Global LNG Prices Rise, Supply Balance and Industrial Competitiveness Highlighted

Global geopolitical volatility driving up world energy prices has placed many countries, including Indonesia, in a major challenge to balance affordable energy prices, supply security, and national energy sector sustainability. Amidst these conditions, manufacturing industry players have begun voicing concerns over rising gas prices and energy supply uncertainties. These concerns are justified given that energy, particularly natural gas, is a key factor supporting national industrial activities. ‘In my view, this situation must be understood as a real energy policy dilemma, as natural gas is not just a commodity but also an industrial production fuel,’ said Josua. He added that LNG and natural gas price issues cannot be viewed solely as an energy sector problem. Their impact directly relates to the continuity of national industry and economic stability. Data from the Ministry of Energy and Mineral Resources (ESDM) shows that Indonesia’s natural gas is predominantly used for domestic needs and across almost all industrial sectors. Nevertheless, Josua noted that Indonesia’s current situation should be understood within a broader context. Global geopolitical volatility affects not only Indonesia but also drives up energy costs and competition for securing energy supplies across various countries. He said many Asian countries are now actively securing LNG supplies to meet domestic energy needs while sustaining their industrial sectors. Meanwhile, according to S&P Global and Shell FGEN data for 2026, LNG prices in the Philippines have reached approximately $28.50 per MMBtu. Singapore, as a regional LNG trading hub, has recorded even higher prices. For industrial bulk sectors, LNG prices stand at around $40.12 per MMBtu, while general retail sectors reach approximately $47.54 per MMBtu.