Indonesian Gas Pipeline Leak Threatens Oil Production Targets

Urgent Response to Pipeline Incident

A significant gas pipeline leak at PT Transportasi Gas Indonesia (TGI) facility in Indragiri Hilir, Riau, has prompted an immediate response from the Ministry of Energy and Mineral Resources (ESDM). The leak occurred on January 2, 2026, and is currently being addressed by the relevant authorities. Laode Sulaeman, Director General of Oil and Gas at ESDM, emphasized the urgency of the situation, stating that the leak is being handled with utmost priority to prevent any adverse impact on national oil production.

Potential Impact on Oil Lifting Targets

The incident has raised concerns regarding the potential impact on Indonesia's oil lifting targets for the year. Laode Sulaeman highlighted that the leak could affect the achievement of the 610,000 barrels per day oil lifting target. The ministry is working diligently to repair the pipeline and minimize disruptions to the supply chain. The leak not only poses a risk to oil production but also affects the gas supply to various facilities, including power generation units and oil pumping stations operated by Pertamina Hulu Rokan (PHR).

Operational Implications

The TGI pipeline supplies gas to power generation facilities in the Rokan region, which in turn power various oil production equipment. Any prolonged disruption could lead to a cascade effect on oil production operations. The ESDM is coordinating closely with TGI and other stakeholders to expedite the repair process and restore normal operations as quickly as possible. The situation remains under close monitoring as developments unfold.