The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has inaugurated PT Sumber Aneka Gas' (SAG) mini LNG plant in Tuban, East Java, to encourage the use of natural gas to add value to the national economy. This is especially true amidst the current geopolitical uncertainty, where all countries are optimising their domestic energy sources.

“I see this as a real effort by a company to meet our domestic needs. Moreover, it produces LNG, LPG, condensate, and CNG. This is a form of energy mix to reduce our LPG imports,” Bahlil said in his remarks in Tuban on 25 June 2026.

The mini LNG plant of SAG is a gas processing facility that produces multi-energy products in the form of LNG, CNG, LPG, condensate, with plans for liquid carbon dioxide (CO2). Gas supply comes from the Sumber Field of PT Pertamina Hulu Energi Tuban East Java until 2035 at 15 million ft3/d. The maximum production capacity of this mini LNG plant is equivalent to 55 300 tpy, with a tank capacity of 1600 m3. The production capacity for other types such as LPG is 9800 tpy, gas condensate 19 600 bbl/y, and liquid CO2 21000 tpy.

All commodities from this mini LNG plant will be consumed by the industrial, retail, and power generation sectors in Java, Bali, and Sulawesi. Production output and storage infrastructure are designed to support a land-based LNG supply chain.

“This is very helpful for the industry in terms of providing certainty regarding raw materials. Right now, things are still okay in East Java, with prices remaining stable. In West Java, Banten, Bekasi, and Jakarta, there's been a correction because our HGBT is declining, and lifting there is also decreasing. We're forced to use LNG, so prices are indeed rising slightly. So, we have to find a compromise to push this forward,” Bahlil added.

Bahlil also instructed the gas supplier, PT Pertamina Hulu Energi Tuban East Java, to support the sustainability of this project until the contract expires in 2035.

This facility is expected to increase domestic natural gas utilisation, strengthen the reliability of energy supply for the industrial and power generation sectors, reduce the use of more expensive and higher-emission fuels, and improve the competitiveness of the national economy.

“The government is committed to continuing to support the development of strategic projects like this. The presence of SAG's mini LNG plant is part of a joint effort to strengthen national energy security, increase industrial competitiveness, and encourage sustainable economic growth. Collaboration between the government, the business sector, and all stakeholders is necessary to optimise the use of national energy resources for the greatest prosperity of the people,” added Head of Bureau of Communication, Public Information Services, and Co-operation, Gita Lestari.

Read the article online at: https://www.lngindustry.com/small-scale-lng/26062026/indonesia-government-inaugurates-mini-lng-plant/

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