Two LPG plants complete commissioning, await trading permits

By Calvin Purba

Indonesia’s upstream oil and gas regulator SKK Migas said two LPG plants with combined production capacity of 193 metric tons per day have completed commissioning and are awaiting trading permits before starting commercial sales.

SKK Migas head Djoko Siswanto said the Cilamaya LPG plant in West Java and the Tuban LPG plant in East Java had both completed the commissioning stage.

“Commissioning has been completed, now we are just waiting for the inauguration,” Djoko said on Monday.

He said both projects are still awaiting LPG trading permits from the government.

“We are only waiting for the LPG or LNG trading permits, because sales activities require a trading license,” Djoko said.

The Cilamaya LPG plant is designed to produce 163 metric tons per day, equivalent to around 1,891 barrels of oil equivalent per day. The project has reached 92.9% completion, with testing already conducted on feed gas lines, lean gas systems and flare systems.

Installation work is continuing in the LPG processing area, product pipelines and condensate unloading terminal.

Read also: Indonesia’s March LPG imports slump as Middle East supplies dry up

Meanwhile, the Tuban LPG plant is expected to produce 30 metric tons per day, or around 348 barrels of oil equivalent per day, and is currently undergoing final commissioning ahead of a planned start-up later this month.

Djoko previously outlined several additional planned LPG projects.

The Jambi Merang LPG plant in Jambi is scheduled to begin construction around June, with planned production capacity of 320 metric tons per day and targeted start-up in the second quarter of 2027. The engineering, procurement and construction contract has been awarded to PT WIN, while evaluation of a possible acquisition of an existing LPG facility is ongoing.

Another planned project is the Senoro LPG plant in Central Sulawesi, which is designed to produce 54 metric tons per day with targeted start-up in 2027.

Work is also underway on a flare gas recovery system expected to be completed in the second quarter of 2026, while authorities are evaluating possible relocation of an existing LPG facility.

Separately, SKK Migas is reviewing a proposed LPG plant development in East Java by PT ARSynergy. The project is expected to have production capacity of 50 metric tons per day with potential start-up in 2027.

Editing by Reiner Simanjuntak