Indonesia's gas ambition faces investor test with global giants Shell and Chevron exits

Key hurdles for the two projects include Indonesia’s caps on domestic gas prices, limits on gas exports and the high costs of carbon capture and storage. - PHOTO: AFP

JAKARTA (Reuters): Indonesia hopes the recent exit of global giants Shell and Chevron from two long-delayed natural gas projects will jumpstart their development, as it races to more than double gas production by 2030.

The Masela and Indonesia Deepwater Development (IDD) projects, together estimated to cost $27 billion, are test cases for Indonesia to show its commitment to attracting oil and gas investment and reversing a decade-long output decline before climate change kills demand for its fossil fuels.