The Indonesian government has considered the gradual halting of liquefied petroleum gas (LPG) exports in line with its plan to optimize gas utilization at home, a newspaper reported Wednesday.

The halting of exports is needed to meet a surge in demand at home as the government pressed ahead with its plan to replace the domestic use of kerosene with LPG starting in 2007, reported The Jakarta Post, quoting a senior government official.

"We will review LPG domestic needs and exports," Energy and Mineral Resources Minister Purnomo Yusgiantoro said, adding that based on the review, LPG export contracts could be terminated.

According to central bank statistics, Indonesia's LPG exports in 2005 amounted to 1.07 million metric tons valued at 476.69 million U.S. dollars.

The proposal to halt LPG exports has been on the cards since the government recently announced its long-term policy of reducing liquefied natural gas (LNG) exports to anticipate a possible oil crisis resulting from growing demand and soaring global oil prices.

In March, President Susilo Bambang Yudhoyono said that LNG export contracts expiring in 2009 would not be renewed.

Indonesia has about 178 trillion cubic feet of proven and potential gas reserves, equivalent to about 1.4 percent of total world natural gas reserves, according to the Oil and Gas Directorate General.

About 55 percent of total production was exported in 2005.

Source: Xinhua