Indonesia Oil and Gas Midstream Market Size (2024 - 2029)

Indonesia Oil and Gas Midstream Market Size Summary

The Indonesian oil and gas midstream market is poised for modest growth, driven by increasing demand for natural gas and oil, alongside rising production levels within the country. Despite challenges such as reduced production and uncertainties in market agreements, particularly with Singapore, the sector is expected to benefit from government investments in exploration and production. These investments are anticipated to enhance production capabilities and offer cost-effective resources for refineries. The market is also seeing the introduction of new projects, such as the Trans-Kalimantan and Borneo gas pipelines, which are expected to improve pipeline capacity and reduce transportation costs. Pertamina, a key player in the market, is actively working on expanding its midstream infrastructure, including significant storage capacity enhancements in regions like East Nusa Tenggara.

The market landscape is characterized by a moderate level of consolidation, with major companies such as Pertamina EP, PT. Connusa Energindo, ConocoPhillips Company, PT. Perusahaan Gas Negara Tbk, and Chevron Corporation playing pivotal roles. Indonesia's oil storage capacity, predominantly owned by Pertamina, is concentrated in Java and the Riau Islands, with ongoing efforts to bolster storage and distribution capabilities. The Maumere BBM Terminal is a notable project aimed at significantly increasing fuel storage capacity. While the consumption of natural gas has shown a year-on-year increase, oil production has faced declines, yet the overall investment in the sector is expected to drive growth in the midstream market during the forecast period.