The Government of Indonesia has announced plans to commence the construction of a 245-km-long gas pipeline in Java in July 2024 to connect excess gas supply. The project is set to be completed in 17 months by December 2025. This new pipeline extends the initial 60 km phase, facilitating the transport of gas from producers in Eastern Java to industrial hubs in the west.
The pipeline addresses the issue of excess gas output in eastern Java, which is expected to continue until at least 2035 due to saturated demand, according to Indonesia’s upstream oil and gas regulator SKK Migas. In 2024, the eastern part of Java is projected to have a gas surplus averaging 90 million standard cubic feet per day (MMSCFD), meanwhile the western part will face a deficit of around 144 MMSCFD.
