Indonesia is set to significantly boost its natural gas output from West Papua’s Bintuni Bay, positioning the region as a key driver of the country’s future energy landscape.
Currently, around one-third of Indonesia’s total gas production originates from the massive Tangguh LNG project in Bintuni Bay, operated by British energy giant BP. This figure is expected to rise sharply as new projects come online in the coming years, with a major production boost anticipated by 2027.
The government, through the Ministry of Investment and the Ministry of Energy and Mineral Resources, has been actively supporting strategic upstream developments in Papua. “The supply of gas from the Papua region will increase significantly starting in 2027,” said a high-ranking official, underscoring the national importance of the province in Indonesia’s long-term energy planning.
One of the most ambitious projects is the Tangguh Train 3 expansion, part of BP’s continued investment in the region. When operational, Train 3 is expected to raise the plant’s capacity from 7.6 million to over 11 million tonnes of LNG per year. It will also supply gas for future downstream industries.
In line with these upstream developments, the government announced a Rp 10 trillion (approx. USD 615 million) investment in a blue ammonia plant to be constructed near Bintuni Bay, slated to begin in 2026. The project, which integrates carbon capture and storage (CCS) technology, will utilize natural gas as a feedstock while minimizing emissions — part of Indonesia’s broader push toward cleaner industrial processes.
“This is not only about energy but about creating an integrated industrial ecosystem in Papua,” said Investment Minister Bahlil Lahadalia. “The gas will not just be exported, but processed to create added value and job opportunities locally.”
Adding to the momentum is the planned construction of Indonesia’s largest floating LNG facility, also to be located in West Papua. Once completed, the FLNG unit will enhance gas processing capabilities offshore, reducing the need for extensive onshore infrastructure while increasing flexibility and efficiency.
These developments are a cornerstone of Indonesia’s energy transition strategy, aiming to balance its global LNG commitments with domestic industrialization goals. The massive natural gas resources of Bintuni Bay are poised to play a pivotal role in ensuring energy security, driving investment into the eastern provinces, and contributing to the global shift toward lower-carbon fuels.
Conclusion
Indonesia is strategically positioning West Papua’s Bintuni Bay as a cornerstone of its future energy and industrial development. With major investments in gas production, including the Tangguh LNG expansion, a new blue ammonia plant, and a floating LNG facility, the region is expected to significantly increase its contribution to national gas output starting in 2027. These projects not only strengthen Indonesia’s energy security and export capacity but also support its broader goals of local industrialization and a cleaner energy future.
