Embracing the Energy Transition and New Gas Supplies, Badak LNG Strives to Optimise Its Business Competencies
During his briefing, Badak LNG’s President Director & CEO Achmad Khoiruddin outlined the forward-looking road map for business development, driven by ENI’s discovery of natural gas reserves in East Kalimantan. The potential gas supply includes discoveries in the North Geng area with an estimated 5 TCF of natural gas, the Geliga well with a 5 TCF potential, and the Gula field with a 2 TCF potential.
To accommodate additional gas supply in the future, Badak LNG is seeking to optimise its facilities. In addition to focusing on reactivation of Train F, the company is examining plans to reactivate Trains C and D to ensure the entire gas potential is absorbed optimally.
Moreover, Badak LNG is actively exploring business diversification through various green innovations. Through a project titled Carbon Dioxide to E-Methanol and E-Methane, the company aims to convert emissions into high-value green products. This decarbonisation step is undertaken to support its Net Zero Emission commitment.
The prospect of additional gas supply and this new wave of innovation provide momentum for the company to strengthen its business strategy. Nanang Untung, Commissioner of PHE and Chair of the Investment and Risk Management Committee, explained that there is a joint commitment to steer the company toward a more sustainable direction. ‘Badak LNG has a great opportunity ahead, and we are also considering how Badak LNG can become a profit-oriented company,’ he said.
He further added that the position of natural gas as a transitional energy is a core asset aligned with the company’s competencies. ‘For the energy transition era from fossil fuels to renewable energy, the transition is gas. This is Badak LNG’s competency. Therefore the company has the capital and the opportunity to leverage its competencies and portfolio to meet business needs in the energy transition era,’ he added.
The series of working visits concluded with a review of the Telihan Recycle community empowerment programme, where the Telihan Recycle group focuses on turning used aluminium waste into ship propellers. ‘We have seen Telihan Recycle and it is very good how Badak LNG empowers the community. We also see opportunities to expand this group of nurtured partners. Hopefully we can collaborate with other companies in Bontang so that it benefits the surrounding community even more,’ concluded Nanang Untung.
This working visit marks the company’s initial step in preparing for Indonesia’s national energy transition. With its operational excellence, commitment to green innovation, and social innovation, Badak LNG continues to move toward a more sustainable path as part of the nation’s energy endeavours.