Indonesian Ministry of Energy and Mineral Resources has approved the allocation of 90 million standard cubic feet per day (MMSCFD) of natural gas from the Jambaran-Tiung Biru (JTB) field, East Java to PT Butonas Petrochemical Indonesia (BPI) for the period from January 1, 2028, to September 17, 2035.
The decision, formalized in Ministerial Letter No. T-174/MG.04/MEM.M/2025 dated April 16, 2025, reallocates gas supply from existing buyer PT Perusahaan Gas Negara (PGN) to BPI. PGN’s allocation will be reduced from 172 MMSCFD to 82 MMSCFD starting in 2028—matching the 90 MMSCFD redirected to BPI.
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BPI is planning to utilize the gas to support its planned IDR 22.8 trillion (USD 1.4 billion) ethanol and methanol plant in Bojonegoro, East Java, which is expected to be completed by 2027. The plant will be located near the JTB field and is designed to strengthen downstream petrochemical development using domestic gas resources, according to suarabanyuurip.com.
Operated by Pertamina EP Cepu (Zone 12), the JTB field began full operations in December 2024, with current production at around 190 MMSCFD. It supplies gas to PLN, PGN, Petrokimia Gresik, and other industries in Central and East Java.
The ministerial letter also instructs upstream oil, gas authority SKK Migas to review and propose any necessary adjustments at least six months before the start of BPI’s allocation period.
Editing by Alexander Ginting
