Tuban Mini LNG Plant Built to Reduce Import Dependency

The government continues to strengthen the utilisation of domestic energy sources as part of efforts to enhance national energy security and independence. One such step is the inauguration of a mini liquefied natural gas (LNG) plant in Tuban, East Java, which is expected to optimise the use of natural gas while providing added value to the economy. The facility was inaugurated by Minister of Energy and Mineral Resources Bahlil Lahadalia. He stated that the development of gas processing infrastructure is crucial amidst global geopolitical dynamics, which are pushing many countries to maximise the use of domestic energy sources. “I see this as a tangible work to meet national energy needs. This facility produces LNG, LPG, condensate, and CNG, thereby strengthening the energy mix while helping to reduce dependence on LPG imports,” Bahlil said. The mini LNG plant is designed to produce various energy products, including LNG, compressed natural gas (CNG), liquefied petroleum gas (LPG), condensate, and in the future, liquid carbon dioxide. The gas supply is sourced from the Sumber field in Tuban under a contract lasting until 2035. The LNG production capacity reaches approximately 55,300 tonnes per year, supported by a storage tank with a capacity of 1,600 cubic metres. Additionally, the facility can produce around 9,800 tonnes of LPG per year, 19,600 barrels of condensate per year, and up to 21,000 tonnes of liquid CO2 per year. All output is planned to meet the needs of the industrial sector, power plants, and the retail market in Java, Bali, and Sulawesi. The distribution system is also designed to use land transportation networks to strengthen the domestic LNG supply chain. Bahlil assessed that the facility’s presence can help maintain the availability of energy raw materials for the industrial sector, especially when gas supply in certain areas declines, necessitating the use of LNG as an alternative. He also requested that gas suppliers ensure the supply is maintained until the contract period ends so that the investment made can provide optimal benefits. “Please support this project sustainably. Certainty of supply is very important so that the investment that has been made can continue to grow and provide benefits for industry and the community,” he said. The government hopes this facility will increase the domestic utilisation of natural gas, strengthen energy supply reliability, reduce the use of more expensive and higher-emission fuels, and simultaneously enhance the competitiveness of national industry.