Java Faces Gas Supply Shortage, New Oil and Gas Projects to Fill the Gap

The Ministry of Energy and Mineral Resources (ESDM) has mapped a number of new natural gas sources in East Java to overcome the gas supply deficit in the Central Java-East Java region. This is also to guarantee the availability of natural gas supply for the Cirebon-Semarang Natural Gas Transmission Pipeline (Cisem) Phase I and II, which have been completed.

Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, explained that there are several new oil and gas fields that could potentially increase natural gas production for the Central Java-East Java region. He detailed that some of these new gas supply sources include the Lengo Field managed by Kris Energy, Bukit Panjang managed by PCK2L, the ENC Field managed by PT Energi Mineral Langgeng, TIS Blora Phase 2, Pertamina EP Asset 4, the Paus Biru Field managed by Medco Sampang, West Sidayu by SIPL, the MBF and MDK Fields by Husky-CNOOC Madura Ltd (HCML), and others.

“If there was a gap in the shortfall, then we have also received adequate information, particularly from SKK Migas, on how to cover the gas shortage in that pipeline section,” he said during a Hearing Meeting with Commission XII of the Indonesian House of Representatives in Jakarta.

In the long-term plan for the 2027 to 2035 period, the potential additional natural gas supply in the East Java and Central Java regions is projected to increase gradually. The highest increase in natural gas production is projected to occur in 2030 to 2031. The government has mapped a number of potential fields ready to be developed in the East Java and Central Java regions.

The main contributors forming the backbone of this additional supply are the Lengo Field managed by Kris Energy, projected to contribute a volume of 84.49 MMSCFD starting in 2030, and the Bukit Panjang Field managed by PCK2L, which will provide a stable contribution of up to 50 MMSCFD in the 2032-2033 period.

He said his office continues to coordinate with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to optimise existing gas reserves. The discovery of these new gas sources is very important so that the already connected pipeline network can function optimally. “However, this is still in the form of potential; how to utilise it will be arranged later by the Directorate General of Oil and Gas together with SKK Migas,” he added.

Based on records from the Directorate General of Oil and Gas at the Ministry of ESDM as of July 2026, the gas deficit in Central and East Java averaged around 100-125 MMSCFD. In January 2026, gas supply was recorded at only 563.01 MMSCFD, lower than the demand of 674.19 MMSCFD, resulting in a gas deficit of around 111.18 MMSCFD.

The largest gas supply deficit was recorded in February 2026, with a shortfall reaching 276.79 MMSCFD, where available supply was only 473.64 MMSCFD to meet demand of 750.43 MMSCFD. In July 2026, the gas deficit reached 104.16 MMSCFD, as from a demand of 753.89 MMSCFD, the available gas supply was only 649.73 MMSCFD.

The gas supply shortage is also projected to continue until the end of 2026. In December 2026, gas supply is estimated to be only 634.02 MMSCFD, lower than the demand of 760.63 MMSCFD. As a result, the gas deficit in December 2026 is estimated to reach 126.61 MMSCFD.

Overall, national natural gas production up to 31 July 2026 averaged 6,544 million standard cubic feet per day (MMSCFD). This figure is still lower than the target in the 2026 State Budget of 6,837 MMSCFD. Likewise, gas distribution realisation up to July 2026 was recorded at an average of 5,208 MMSCFD, lower than the 2026 State Budget target of 5,508 MMSCFD.

Compared with realisation in 2025, production and gas distribution throughout 2026 also appear to have declined. In 2025, gas production was recorded at 6,753 MMSCFD and gas distribution at 5,425 MMSCFD.