Indonesia opens Tuban gas plant to reduce LPG imports

Tuban, E. Java (ANTARA) - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia inaugurated a new gas processing facility in Tuban, East Java, emphasizing that the project will help reduce Indonesia’s dependency on LPG imports.

The Mini Liquefied Natural Gas (LNG) Plant, operated by PT Sumber Aneka Gas (SAG), is designed to process domestic gas reserves directly for industrial and commercial use.

"This facility will directly reduce our import dependency. The imports we have been incurring can be reduced by shifting production here at home,” Lahadalia said following the inauguration ceremony on Thursday.

According to ministry data, Indonesia consumes over 8.5 million metric tons (MT) of LPG annually. However, national production stands at only 1.91 million MT, forcing the country to import the remaining 7.47 million MT to meet domestic demand.

The PT SAG facility boasts a maximum production capacity of 55,300 tons of LNG per year, supported by a 1,600-ton storage tank infrastructure tailored for land-transportation-based supply chains.

The mini plant is engineered to yield multiple commodities, including 9,800 tons of LPG per year, 19,600 barrels of gas condensate per year and 21,000 tons of liquid carbon dioxide (CO2) per year.

Additionally, it is capable of producing compressed natural gas (CNG) with a capacity of 6 million standard cubic feet of gas per day (MMscfd).

Lahadalia confirmed that the entire output from the Tuban plant will be absorbed by the industrial sector across East Java, providing a reliable baseline of energy for local manufacturers.

"This plant is highly beneficial for local industries as it provides long-term certainty regarding their raw material supply," he explained.

Reaffirming the state's commitment to the sector, Lahadalia stated that the government will continue to support strategic mini-LNG infrastructure projects.

The ministry views these localized plants as essential tools to strengthen national energy security, boost regional industrial competitiveness and foster sustainable economic growth.

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Translator: Putu Indah Savitri, Yashinta Difa

Editor: Arie Novarina

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