Aceh pushes Andaman gas downstreaming for economic growth

Banda Aceh (ANTARA) - Aceh is seeking to maximize the economic benefits of the massive natural gas discovery in the offshore Andaman Block by encouraging the development of local downstream industries.

Aceh Governor Muzakir Manaf, popularly known as Mualem, has urged the central government to integrate the project with onshore downstream industrial development, particularly within the Arun Lhokseumawe Special Economic Zone (SEZ).

The initiative is in line with President Prabowo Subianto's 2025–2029 National Medium-Term Development Plan (RPJMN), which identifies the revitalization of the Arun SEZ as one of 77 National Strategic Projects.

"Governor Mualem wants the Andaman Block to become a key driver of Aceh's economic growth," Aceh Government spokesperson Nurlis Effendi said here on Wednesday.

The United Arab Emirates-based Mubadala Energy is targeting an initial production of approximately 300 million standard cubic feet of gas per day (MMSCFD), starting with the Tangkulo gas field in the South Andaman Working Area.

"We have abundant natural gas resources, so we must prepare carefully. We have received the green light to pursue downstream development," Nurlis said.

According to him, the gas reserves and an estimated 7,500 barrels of condensate per day could supply a planned methanol plant to support Indonesia's biodiesel blending program.

The condensate could also be processed domestically into products such as naphtha, kerosene, diesel fuel, and gasoline.

"The availability of condensate creates opportunities for establishing refineries. The economic impact will become significant once these downstream industries are developed," Nurlis said.

To secure these economic benefits, Governor Mualem has formally opposed offshore processing.

He has written directly to President Prabowo and the Minister of Energy and Mineral Resources, requesting that the gas be processed through an Onshore Receiving Facility (ORF) at the Arun Lhokseumawe SEZ instead of using a Floating Production, Storage and Offloading (FPSO) vessel offshore.

The Aceh administration has also requested a temporary postponement of the project's Plan of Development (PoD) to allow the central and regional governments to resolve differences over gas allocation for local industries.

In addition, the provincial government has called on Mubadala Energy to cooperate in developing local human resources to prepare Acehnese workers for employment in the oil and gas industry.

Aceh's northern waters contain six major oil and gas working areas, namely Andaman I, Andaman II, Andaman III, Central Andaman, South Andaman, and South West Andaman.

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Translator: Rahmat Fajri, Yashinta Difa

Editor: Primayanti

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