Government Inaugurates Mini LNG Plant in East Java to Support Domestic Energy Optimisation
The government continues to optimise the utilisation of domestic energy sources to support the achievement of President Prabowo Subianto’s Asta Cita vision, namely energy resilience and independence. To achieve this, Minister of Energy and Mineral Resources Bahlil Lahadalia inaugurated the PT Sumber Aneka Gas Mini LNG Plant in Tuban, East Java, to promote the use of natural gas to provide added value for the national economy. This is particularly important amid today’s uncertain geopolitical conditions, where all countries are striving to optimise their domestic energy sources.
“I see this as a tangible work by a company carried out to meet our domestic needs. Moreover, this produces LNG, LPG, condensate, and also CNG. This is a form of energy mix in reducing our LPG imports,” said Bahlil.
The PT Sumber Aneka Gas (SAG) Mini LNG Plant is a gas processing facility that produces multiple energy products, including LNG, CNG, LPG, condensate, with plans for liquid CO2. The gas supply comes from the Sumber Field of PT Pertamina Hulu Energi Tuban East Java until 2035, at a rate of 15 MMSCF per day. The maximum production capacity of this mini LNG plant is equivalent to 55,300 tonnes per year with a tank capacity of 1,600. Production capacity for other types includes 9,800 tonnes of LPG per year, 19,600 barrels of gas condensate per year, and 21,000 tonnes of liquid CO2 per year.
All commodities from this mini LNG plant will be absorbed by the industrial, retail, and power generation sectors in Java, Bali, and Sulawesi. The production output and storage infrastructure are designed to support the LNG supply chain via land transportation. “This greatly helps the industry by providing certainty regarding raw materials. Currently in East Java, conditions are still okay and prices are still okay. In West Java, Banten, Bekasi, and Jakarta, there have been corrections because our HGBT is declining, as lifting there is decreasing. We are forced to use LNG, so the price has risen somewhat. We need to find a middle ground to encourage this,” Bahlil added.
Bahlil also directed the gas supplier, PT Pertamina Hulu Energi Tuban East Java, to support the project’s sustainability until the contract ends in 2035. “Please provide support. Do not let it run for two years and then stall. People have made large investments here, so continue to support them, hold onto the contract, and do not change the contract terms so they have certainty in making future investments,” Bahlil stressed.
The facility is expected to increase the utilisation of domestic natural gas, strengthen the reliability of energy supply for the industrial and power generation sectors, reduce the use of more expensive and higher-emission fuels, and enhance national economic competitiveness. The government is committed to continuing to support the development of strategic projects like this. The presence of the PT Sumber Aneka Gas Mini LNG Plant is part of a joint effort to strengthen national energy security, boost industrial competitiveness, and encourage sustainable economic growth. Collaboration between the government, businesses, and all stakeholders is needed to optimise the utilisation of national energy resources for the greatest prosperity of the people.