Gas Flaring Reduction in the Indonesian Oil and Gas Sector – Technical and Economic Potential of Clean Development Mechanism (CDM) projects Gustya Indriani HWWA-Report 253 Hamburgisches Welt-Wirtschafts-Archiv (HWWA) Hamburg Institute of International Economics 2005 ISSN 0179-2253 The HWWA is a member of: • Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz (WGL) • Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute (ARGE) • Association d‘Instituts Européens de Conjoncture Economique (AIECE) Gas Flaring Reduction in the Indonesian Oil and Gas Sector – Technical and Economic Potential of Clean Development Mechanism (CDM) Projects Gustya Indriani I thank Dr. Axel Michaelowa of the Programme International Climate Policy for re- search supervision. The CDM Capacity Building Programme of GTZ provided travel funding for data collection in Indonesia. The report was submitted as Masters Thesis under the International Master Program in Environmental Engineering at Technical University of Hamburg-Harburg under the supervision of Prof. Dr. rer. Nat. Ulrich Förstner and Prof. Dr.-Ing. Wilfried Schneider. HWWA REPORT Editorial Board: Prof. Dr. Thomas Straubhaar Dr. Klaus Kwasniewski Dr. Konrad Lammers Dr. Eckhardt Wohlers Hamburgisches Welt-Wirtschafts-Archiv (HWWA) Hamburg Institute of International Economics Öffentlichkeitsarbeit Neuer Jungfernstieg 21 20347 Hamburg Phone: +49-040-428 34 355 Fax: +49-040-428 34 451 e-mail:
[email protected] Internet: http://www.hwwa.de/ Gustya Indriani Gang Repeh-rapih no 28, Muararajeun Beun Bandung 40122, Indonesia Phone: +62 22 7207507 e-mail:
[email protected] Abstract Indonesia currently ranks as the world’s 17th oil and 6th gas producer, but its production levels are slowly declining. In Indonesia, the oil companies may extract, process and market associated gas jointly with the State Oil and Gas Board.