Indonesia LNG Business: Past, Present, and Future


Currently, LNG production in Indonesia comes from three LNG plants: The Badak LNG, the Tangguh LNG, and the small 2 MTPA Donggi-Senoro LNG plant.

In the last five years, Indonesia’s LNG production volume declined by 23%, from 18.2 MTPA in 2018 to 14 MTPA in 2022 due to the declining production from the Badak LNG plant.

The Badak LNG plant, one of the largest LNG plants in the world has been in operation for 45 years since it began production in 1977 in East Kalimantan.

The Badak LNG plant comprising eight trains has a total production capacity of 22.6 MTPA. However, due to the declining gas supplies from its surrounding oil and gas fields in East Kalimantan, only two trains are now in operation.

Due to the issue of dwindling gas supplies, most of the LNG from the Badak plant is sold as short-term or spot cargoes in 2022 as it cannot secure medium and long-term deals.  

The Tangguh plant is carrying the heavy load of producing the LNG for the export market. Started producing LNG in 2009, the Tangguh plant currently consists of two trains with a total production capacity of 7.6 MTPA.

Most of Indonesia’s LNG cargoes are sold in the Asia Pacific region as expected. However, thanks to the recent high LNG spot prices, some cargoes also reached European markets.

For the domestic LNG market in 2022, the “real” LNG consumption has reached 3.17 MTPA, about 23% of annual production. This number is, unfortunately, lower than the annual LNG volume consumed by some neighboring countries like Thailand (8.2 MTPA), Singapore (3.7 MTPA), and Bangladesh (4.4 MTPA).

Good progress is coming from the performance of Perta Arun Gas, which is operating the Arun LNG Regas Terminal and LNG Hub in Aceh. So far, almost one metric ton of LNG volume has been unloaded into Arun LNG tanks and later reloaded for final delivery.


In the future, the Tangguh and the future Masela plants will play a key role in positioning Indonesia as one of the top LNG producers with a total plant capacity of 33 MTPA.

The Tangguh Train #3 which is set to go on stream by the end of 2023 will increase the total Tangguh LNG plant capacity by 3.8 MTPA to 11.4 MTPA.

With the divestment of Shell’s interest in the Masela block, the Abadi LNG plant with a capacity of 9.5 million tons per year is expected to be completed by 2030.

Currently, up to 17 MTPA of future volume is still uncontracted. However, according to SKK Migas, there are huge interests in Indonesia’s LNG.

Nisi Setyobudi

August 11, 2023

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