Where the Gas Went: Fixing Leaks to Boost Revenue and Energy Security in Indonesia
Every year, around 500 million cubic meters of natural gas silently escape from oil and gas operations across ASEAN (The Association of Southeast Asian Nations) countries. At local prices, this is enough gas to power 1.5 million households, potentially generating $90 million in annual revenue.
Most of this lost gas is methane, one of the most potent greenhouse gases. Methane is nearly 30 times more potent than carbon dioxide at trapping heat.
The good news is that most of this wasted gas and the associated harmful emissions are preventable. More than 80 percent of methane emissions from oil and gas operations in ASEAN countries can be reduced at zero net cost, and often at a profit. That means more gas available to boost energy security, while also providing a safer operating environment for workers and reducing emissions.
In Indonesia, oil and gas revenues remain critical to financing the country’s economic development. Every cubic meter of gas that escapes into the atmosphere represents a lost opportunity to enhance efficiency while generating additional revenue. Across Southeast Asia, where energy demand is rising quickly, capturing gas rather than letting it escape into the air also reduces the need for additional production or imports.
Leaks are also a safety concern. Even small releases from valves or seals increase the risk of accidents. Fixing them improves safety, especially when done through routine leak detection and repair (LDAR) programs.
Capturing the opportunity
In December 2025, GFMR partnered with Indonesia’s state-owned operator, Pertamina, to carry out an intensive LDAR campaign at the PT Badak NGL (Natural Gas Liquefaction) plant, one of the country’s largest and oldest facilities; its last train was built in 1998.
In less than two weeks, the team found over 247 significant leaks. Around 100 were repaired on the spot, and a further 80 leaks were addressed in the last few months. The remaining leaks have been logged for follow-up during more comprehensive maintenance.
From invisible losses to measurable savings
The economic benefits are just as compelling. The entire survey cost less than US$50,000. The gas saved is expected to generate revenue worth roughly three times the cost of the survey, with a payback period of just four months.
Scaling regional impact
Looking across Indonesia, Pertamina’s broader portfolio offers significant opportunities to identify and repair leaks, especially in many older facilities, thereby further increasing gas savings and reducing emissions.
By replicating this approach across its broader asset base in 2026, Pertamina could capture an additional 4,000 tonnes of methane, avoiding roughly US$3 million in lost gas each year.
Applied across all ASEAN, the cumulative impact on boosting government revenues and energy security, while also reducing emissions, would be significant.
The lesson from the collaboration at PT Badak NGL is simple and needs to be shared widely with governments industry around the world: at a time when many countries are seeking affordable and reliable energy, LDAR programs are often a quick and inexpensive solution.. They now need to be developed and deployed at scale, in a long-term, programmatic manner, not just in Indonesia but also across the wider ASEAN region and anywhere oil and gas is produced around the world.
