Indonesia Explores Gas Supply from Brunei to Process into LPG
Jakarta — Indonesia is currently exploring a cooperation framework with Brunei Darussalam to meet its liquefied petroleum gas (LPG) feedstock requirements, according to Energy and Mineral Resources Minister Bahlil Lahadalia.
Bahlil disclosed that this exploration has been discussed directly during his recent bilateral meeting with Brunei’s Deputy Prime Minister. The proposed cooperation encompasses technology transfer and the utilisation of natural gas resources.
“Yesterday we met with Brunei’s Deputy Prime Minister and conducted bilateral communication. Technology transfer, and they also wanted to learn from Indonesia,” he stated when encountered at the ESDM Ministry office in Jakarta on Tuesday (17 March 2026).
Regarding Indonesia’s LPG requirements, Bahlil explained that the government is targeting supplies of propane (C3) and butane (C4) from Brunei, which are the primary hydrocarbon components that form LPG. This is because Indonesia faces a shortage of both types of natural gas. Only these two gas types are suitable for processing as LPG. The Indonesian Government is currently considering two cooperation schemes.
The first scheme involves direct import of C3 and C4 gas feedstock from Brunei for subsequent processing into LPG in Indonesia. The second scheme entails establishing an LPG processing facility in Brunei, with all production being taken off (offtake) by Indonesia.
“We have also stated that if they possess C3 and C4 gas for LPG feedstock, we can obtain theirs, or we can build an LPG industry there with Indonesia as the offtaker,” he explained.
This exploration of new sources aligns with the government’s efforts to diversify the national energy supply chain, particularly amid global geopolitical uncertainty and logistical disruptions in the Middle East.
When asked further about the investment cooperation realisation prospects, Bahlil stated that the government is open to all mutually beneficial schemes.
“Yes, all possibilities exist,” he concluded.