Focus Group Discussion on Regaining Aceh’s Energy Sovereignty – Iskandar Muda Park

Taman Iskandar Muda invited Aris Mulya Azof, Chairman of the Indonesian Gas Society, to speak at a focus group discussion scheduled for October 20, 2026, in Jakarta. The organizers asked him to assess a proposed gas pipeline of approximately 90 kilometers from the Andaman Block to the Arun–Lhokseumawe Special Economic Zone in Aceh.

Aris’s presentation took the approved Tangkulo development plan as its starting point. The plan calls for eight subsea wells, offshore processing aboard a floating production, storage and offloading unit, and an approximately 84-kilometer pipeline to a new onshore receiving facility near Arun. It targets first gas sales in late 2028 or early 2029.

The presentation also outlined onshore and hybrid processing options. Onshore processing could make greater use of Arun’s existing facilities, while a hybrid approach could combine initial offshore treatment with further processing on land. Both options would require technical and commercial assessment and the relevant approvals.

To turn the gas supply into an industrial opportunity, Aris called for early agreement on allocation, volumes, prices, and delivery terms. He also emphasized the need to identify buyers, verify capacity and access rights at Arun’s facilities, and clarify how the new receiving facility would connect to the economic zone.

The presentation proposed starting with power plants and industrial customers ready to use the gas. Expansion within the economic zone could follow as shared utilities and tenants become ready. Larger fertilizer and petrochemical projects would depend on firm long-term supply, competitive delivered prices, and a viable business case.

Aris also highlighted the need to clarify how Aceh could participate in the project and benefit from it. Priorities included advancing the participating interest process, defining the role of regional enterprises, and building local capabilities. He called for clear responsibilities and milestones so gas delivery and industrial investment can progress together.