Indonesia Expands Domestic Gas Use Through Mini LNG Plant

RRI.CO.ID, Tuban - The Government continues optimizing domestic energy resources to support achievement of the Asta Cita agenda under President Prabowo Subianto’s administration, particularly energy resilience and independence. To support this objective, Minister of Energy and Mineral Resources, Bahlil Lahadalia, inaugurated the Mini LNG Plant of PT Sumber Aneka Gas in Tuban, East Java to strengthen natural gas utilization and increase national economic value.

In a written statement, he said the facility represents a concrete achievement by the private sector to fulfill domestic energy requirements amid uncertain geopolitical conditions. He affirmed that the facility produces Liquefied Natural Gas, Liquefied Petroleum Gas, condensate, and Compressed Natural Gas as part of efforts to reduce Indonesia’s Liquefied Petroleum Gas imports.

“This is a tangible achievement by a company to meet our domestic needs. Moreover, it produces LNG, LPG, condensate, and CNG, which represent an energy mix effort to reduce our LPG imports,” Bahlil said during his remarks in Tuban on Thursday, June 25, 2026.

The Mini LNG Plant operated by PT Sumber Aneka Gas is a gas processing facility designed to produce multiple energy products including Liquefied Natural Gas, Compressed Natural Gas, Liquefied Petroleum Gas, condensate, and planned liquid carbon dioxide output. Gas supply originates from the Sumber Field operated by Pertamina Upstream Energy Tuban East Java until 2035 with an allocation of 15 million standard cubic feet per day.

The facility has a maximum production capacity equivalent to 55,300 tons annually with storage tank capacity reaching 1,600 units. Production capacity for other products includes 9,800 tons annually of Liquefied Petroleum Gas, 19,600 barrels annually of condensate gas, and 21,000 tons annually of liquid carbon dioxide.

All commodities produced by the Mini LNG Plant will be absorbed by industrial, retail, and electricity generation sectors across Java, Bali, and Sulawesi. Production output and storage infrastructure have been designed specifically to support a land transportation-based Liquefied Natural Gas supply chain.

Furthermore, Bahlil stated that the project would significantly support industry by providing greater certainty regarding raw material availability and supply continuity. He also explained that declining gas lifting in West Java, Banten, Bekasi, and Jakarta has forced reliance on Liquefied Natural Gas, resulting in higher prices and requiring balanced policy solutions.

Bahlil additionally instructed gas supplier Pertamina Upstream Energy Tuban East Java to support project continuity until contract completion in 2035. He stressed that investment certainty must be maintained through contract consistency so investors can continue planning long-term business development.

The facility is expected to increase domestic natural gas utilization and strengthen energy supply reliability for industrial and electricity generation sectors. The Government remains committed to supporting strategic projects like this as part of broader efforts to strengthen national energy resilience, industrial competitiveness, and sustainable economic growth.