Minister of Energy and Mineral Resources Visits Badak LNG, Discusses Refinery Reactivation

• 23 Sep 2024
• mk.novian.kusmana

BONTANG – Minister of Energy and Mineral Resources, Arifin Tasrif, conducted a working visit to PT Pertamina Hulu Energi (PHE) subsidiary, Badak LNG, to discuss strategic plans for the reactivation of its refinery following the discovery of new gas sources by ENI Indonesia.

On Tuesday, August 13, 2024, the Minister, accompanied by the Head of SKK Migas Dwi Soetjipto, PHE Director of Development and Production Awang Lazuardi, Badak LNG President Director & CEO Achmad Khoiruddin, and the company’s management team, engaged in a strategic discussion to provide guidance and assess the refinery's readiness for reactivation.

Currently, Badak LNG operates only two or three of its eight trains due to a decline in gas supply. However, new gas reserves recently discovered in ENI Indonesia's North Ganal Working Area, East Kalimantan, are projected to enable the operation of four trains in the near future. To accommodate this influx, Badak LNG is preparing to reactivate one or two additional trains, including Train F, which is presently in extended short-term idle status (ESTI).

Minister Arifin Tasrif emphasized the importance of reactivating Train F, underscoring that utilizing existing infrastructure is both more strategic and economical than constructing new facilities.

"Badak LNG already has Train F, a relatively new facility, which can be reactivated. We have requested the preparation of a program and budget for this purpose. By utilizing existing infrastructure, there will be no need to rebuild LNG facilities from scratch," said Minister Arifin.

He further highlighted the untapped potential of Badak LNG, noting its eight trains and the ongoing exploration of gas reserves in East Kalimantan. “Maximizing the existing capacity of Badak LNG is crucial, especially with the potential for further gas discoveries in the region,” he added.

The Minister expressed confidence in Badak LNG’s ability to successfully manage the reactivation project, given its proven track record in collaboration with foreign producers and extensive expertise in LNG processing.

“Badak LNG has demonstrated its capability to operate and maintain refinery facilities, and with its long-standing partnerships with international producers, we are confident in its ability to manage this project effectively,” he stated.

Moving forward, the Ministry of Energy and Mineral Resources, SKK Migas, and Badak LNG will maintain close coordination to ensure the successful reactivation of Train F, optimizing the management of new gas reserves and contributing to national energy resilience.
 

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