Indonesia Energy LNG Infrastructure
Indonesia’s liquified natural gas (LNG) market is rapidly evolving, offering opportunities for U.S. companies across the entire energy value chain. U.S. companies specializing in engineering, procurement, and construction (EPC) can support large-scale, high-impact infrastructure projects. U.S. logistics providers, digital technology, and energy security innovators particularly in automation, LNG shipping, and Carbon Capture, Utilization, and Storage (CCUS) are also well-positioned to provide technology solutions and products as Indonesia upgrades and expands its LNG infrastructure.
Indonesia’s LNG demand is set to rise sharply, from 3.9 million metric tons per annum (mmtpa) in 2023 to 37.5 mmtpa by 2050, driven by a shift from coal to gas and increasing power needs in remote and industrial areas. To meet this demand, Indonesia is ramping up both LNG import and export capabilities.
Indonesia currently operates three liquefaction plants with a total capacity of over 36 mmtpa, though effective output is closer to 22.6 mmtpa due to declining feedstock. On the import side, six regasification terminals with a total capacity of 11.6 mmtpa are operating across Jakarta, Aceh, West Java, South Sumatera, North Sulawesi, and Bali. This capacity is projected to increase to 14.9 mmtpa by 2035, supported by ongoing and planned projects including floating storage and regasification units (FSRUs) and small-scale terminals in Java, Sulawesi, and Papua to fulfil rising demand in industrial centers and remote regions. Indonesia also holds significant untapped gas reserves in its eastern regions offering significant potential for exploration and infrastructure development.
As the government modernizes gas infrastructure and advances energy security goals, U.S. companies have a strong window to engage in floating production, storage and offloading (FPSO), onshore LNG plants (OLNG), subsea systems (SURF), cutting-edge liquefaction technologies, and the development or revitalization of strategic LNG projects like the Abadi LNG (Masela) project, Cilacap FSRU, and Teluk Lamong mini-LNG. By leveraging their expertise and technology leadership, U.S. firms can play a pivotal role in shaping Indonesia’s energy future while securing a strong foothold in a rapidly expanding regional market.
For more information, contact Ari Febriana, Commercial Specialist at the U.S. Embassy in Jakarta, at Ari.Febriana@trade.gov