In Response to the Energy Transition and New Gas Supplies, Badak LNG Aims to Optimize Its Business Capabilities

Badak LNG is now preparing to take steps to optimize its business portfolio in the era of energy transition. This commitment was outlined during a working visit by the Commissioners of PT Pertamina Hulu Energi (PHE), namely Mr. Nanang Untung, Commissioner and Chairman of the Audit and Investment Committee of PT PHE, and Mr. Muhammad Indra Budiman, Independent Commissioner and Chairman of the Audit Committee of PT PHE, accompanied by the President Director & CEO of Badak LNG at the Badak LNG Main Building from Thursday (May 21, 2026) to Friday (May 22, 2026). The series of visit activities included business strategy discussions, a refinery facility tour or management walkthrough, as well as a visit to Badak LNG’s CSR partner, Telihan Recycle.

In his presentation, Badak LNG President Director & CEO Achmad Khoiruddin outlined the roadmap for future business development driven by the discovery of natural gas reserves in East Kalimantan by ENI. This potential natural gas supply includes discoveries from the Geng North area with an estimated 5 Trillion Cubic Feet (TCF) of natural gas, the Geliga well with a potential of 5 TCF of natural gas, and the Gula field with a potential of 2 TCF.

To accommodate additional gas supply in the future, Badak LNG is working to optimize its facilities. In addition to focusing on the reactivation of Train F, the Company is currently reviewing plans for the additional reactivation of Trains C and D to ensure that the full potential of the gas can be optimally utilized.

Furthermore, Badak LNG is actively exploring business diversification through various green innovations. Through a project titled “Carbon Dioxide to E-Methanol and E-Methane,” the Company aims to convert emissions into high-value-added green products. This decarbonization initiative is undertaken to support the Net Zero Emission commitment.

The potential for additional natural gas supply, coupled with this new direction in innovation, serves as a momentum for the Company to strengthen its business strategy. Commissioner and Chairman of the Audit and Investment Committee Nanang Untung explained the shared commitment to steer the Company toward a more sustainable path. “Badak LNG has significant opportunities ahead, and we are also considering how to ensure Badak LNG can become a profit-oriented company,” he stated.

Furthermore, he added that natural gas’s position as a transition fuel is a key asset aligned with the Company’s core competencies. “In the energy transition era from fossil fuels to renewable energy, the bridge is natural gas. This is Badak LNG’s area of expertise. Therefore, the Company has the resources and opportunities to leverage its expertise and portfolio to meet business needs during the energy transition,” he added.

The series of working visits concluded with an inspection of the Telihan Recycle community empowerment program, where the Telihan Recycle group focuses on transforming used aluminum waste into ship propellers. “We’ve seen Telihan Recycle, and it’s excellent how Badak LNG empowers the community. We also see an opportunity to further develop this partner group. Hopefully, we can collaborate with other companies in Bontang so that it becomes even more beneficial for the surrounding community,” concluded Nanang Untung.

This working visit marks the Company’s first step in preparing for the national energy transition. With its operational expertise and commitment to green and social innovation, Badak LNG is constantly moving toward greater sustainability as part of its efforts for the nation’s energy future.