Indonesia with its abundant natural energy resources helps the growth of the country’s economy. [1] Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (The Special Task Force for Upstream Oil and Gas Business Activities) or known as SKK Migas said that Liquified Natural Gas (LNG) production until the first quarter of 2022 had reached 42 cargoes. Moreover, Indonesia took the eighth place of world’s largest exporters of Liquefied Natural Gas (LNG) in 2021 that equivalent to 2.8% of the total global LNG export of 516.2 billion cubic meters Widi [2]. The export activities or sending products abroad will automatically affects to Indonesia’s LNG business development and create a conducive business climate. By selling goods abroad there is a potential for lower currency countries to get a bigger profit since the price will be more expensive than the original price and still affordable for foreign buyers.

[3] LNG Compared to gasoline and diesel, LNG is more environmentally friendly because it can reduce emissions by around 85%, and compared to CNG, LNG has an energy density value of three times greater at the same volume. LNG can be stored at low pressure (1 atmosphere), and has a longer mileage.

[4] Construction of a mini-LNG terminal is one of the achievements of the Ministry of Energy and Mineral Resources whose benefits can be directly felt by the community. With the inclusion of LNG, primary energy costs are saved of IDR 70 billion per year. The use of LNG can also reduce the power plant's cost of production (BPP) by 38%. Since due to limited infrastructure, most of Indonesia’s LNG production is exported. Based on data from the Ministry of Energy and Mineral Resources, domestic use of LNG is only around 405.2 BBTUD. Meanwhile, the exported LNG reached 1,907.8 BBTUD.

One of the LNG projects that is prosperous in Indonesia is LNG Tangguh Plant. [5] It has a very positive socio-economic impact through community development programs and most importantly able to providing the electricity needs of Teluk Bintuni Regency. Later on, when Tangguh Train-3 LNG Plant (Expansion of LNG Tangguh plant project) already established, it will even make the project much more beneficial. For instances, the project will be fulfilled the needs of gas power plant that producing electricity for West Papua Province. Moreover, about 75% production also goes to domestic companies, it means that it will fulfill the need of 3.000 MW electricity in Indonesia in the future.

PT JGC Indonesia is one of the companies that worked on the Gas Processing plant of Tangguh LNG project in Teluk Bintuni, Tanah merah Papua. PT JGC Indonesia did the Front-End Engineering & Design (FEED) process. Furthermore, PT JGC Indonesia also contributed to several successful projects such as FEED and Design for Donggi Senoro LNG Project, Specific works on LNG Facilities I, II, III, and many more. The well-finished projects indicate the sincerity of the company to do a preeminent performance in every EPC business of LNG sector and show the credibility to be the integrated solutions in upcoming projects.

References :

[1] V. N. Setiawan, “Gas Melimpah, Produksi LNG ri capai 42 Kargo di Q1-2022,” CNBC Indonesia, 22-Apr-2022. Available: https://www.cnbcindonesia.com/news/20220422171121-4-334099/gas-melimpah-produksi-lng-ri-capai-42-kargo-di-q1-2022. [Accessed: 15-Feb-2023].

[2] “Pertamina Rintis pemanfaatan LNG untuk Transportasi Dan Rumah Tangga,” ESDM. Available: https://www.esdm.go.id/id/media-center/arsip-berita/pertamina-rintis-pemanfaatan-lng-untuk-transportasi-dan-rumah-tangga. [Accessed: 15-Feb-2023].

[3] S. Widi, “8 Negara Eksportir Utama LNG PADA 2021, Indonesia Salah Satunya,” Dataindonesia.id. Available: https://dataindonesia.id/sektor-riil/detail/8-negara-eksportir-utama-lng-pada-2021-indonesia-salah-satunya. [Accessed: 15-Feb-2023].

[4] Negara Kepulauan, Indonesia Akan terus kembangkan terminal mini LNG. ESDM. (n.d.). Retrieved February 15, 2023, from https://www.esdm.go.id/id/berita-unit/direktorat-jenderal-minyak-dan-gas-bumi/negara-kepulauan-indonesia-akan-terus-kembangkan-terminal-mini-lng.

[5] “Sekilas Penetapan Pelaksanaan Pembangunan proyek Kilang LNG tangguh train 3,” ESDM. Available: https://www.esdm.go.id/id/media-center/arsip-berita/sekilas-penetapan-pelaksanaan-pembangunan-proyek-kilang-lng-tangguh-train-3. [Accessed: 15-Feb-2023].


This article is written by :
Fauzaan Barreza Sudrajat
Sales & Marketing staff

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