BONTANG – Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, paid a working visit to Badak LNG to discuss the strategic plan for reactivation of the refinery with the discovery of a new gas source from ENI Indonesia. During the visit on Tuesday (13/8/2024), the Minister of Energy and Mineral Resources and his entourage and accompanied by the Head of SKK Migas Dwi Soetjipto, Director of Exploration and Production PHE Awang Lazuardi, President Director & CEO of Badak LNG Achmad Khoiruddin, and Badak LNG management held a discussion strategic, provide direction, and see the extent of Badak LNG’s readiness to reactivate the refinery.

Badak LNG has 8 refineries or trains and currently only two or three refineries are operating due to shrinking gas supplies. However, as time goes by, the Italian company, ENI Indonesia, succeeded in finding new gas reserves in the North Ganal Working Area, East Kalimantan which is projected to increase the number of refineries operating to four trains over the next few years. So to anticipate the new gas supply, Badak LNG is trying to restart one or two more LNG plants, one of which is Train F which currently has extended short term idle (ESTI) status.

Arifin said that the reactivation of Train F needed to be prepared carefully. He emphasized that utilizing existing facilities, such as Train F, is a strategic step that is more economical than creating new facilities from scratch. “Badak LNG already has Train F, which is relatively new and can be reactivated, so we asked them to arrange a program and budget. So with this facility, we don’t need to rebuild LNG facilities, but use existing facilities,” said Arifin in his statement (14/8).

He also highlighted that the gas potential in the area around Kalimantan is still quite large and is optimistic that Badak LNG will implement this reactivation plan. “Badak LNG has 8 trains. So it needs to be maximized. “Moreover, the gas potential in the East Kalimantan area can still be exploited,” he said.

According to Arifin, the reactivation by Badak LNG will run smoothly, especially if you look at the long track record and experience of working with foreign producers. Badak LNG has demonstrated its ability to operate and maintain refinery facilities. “In terms of expertise, we are very confident in Badak LNG’s capabilities. Especially in processing gas into LNG. “Not to mention the track record of collaborating with foreign producers,” he explained.

By monitoring the progress of the Badak LNG refinery reactivation project, the Ministry of Energy and Mineral Resources, SKK Migas, and Badak LNG will continue to coordinate to ensure that all preparations for the reactivation of Train F can proceed according to plan. The aim is to manage new gas reserves in an effective and sustainable way, and support national energy security.(RI)