The Badak LNG Project began when Huffco, a production sharing contractor (PSC) of Pertamina, discovered a huge natural gas reserve at Badak Field, East Kalimantan in February 1972. On November 26, 1974, PT Badak NGL, a non-profit company with the shareholders of Pertamina, Vico and Jilco was set up. This company is entrusted to operate and maintain the Badak LNG Plant.

In 1980, construction commenced on train C and D as LNG demand increased from the Japanese buyers. The of the LPG extraction facilities in 1988. The refrigerated LPG production is also dedicated to Japanese export.

Due to the continuous increase of LNG demand in Japan, Taiwan, and Korea, then Train E was constructed in 1987-1989, while train F was constructed in 1991-1993. Since 1992 some LNG productions from this LNG Plant have also been exported to South Korea.
The development of the Badak LNG Plant had been continued by the construction of the Train G that was completed in 1997 and Train H which was completed in the end of 1999. By 8 train's operation, the production capacity is able to reach into ± 22 million tons LNG/year.

In entering the third milleniums, the Badak LNG plant has developed and able to produce the biggest LNG production in the world. Up to December 13, 2001, Badak LNG plant had shipped the 4500 LNG and the 5000 shipment projection would be in the second quarter of 2003.

The LNG plant also has ability to handle 3 shipment at the same time, by completing the 3rd loading pier at the end of 1999, which was built to anticipate the increasing shipment frequency in the future, as it is expecting to be able to maintain the service level to LNG buyer.

The natural gas reserve to produce LNG is still sufficient to serve buyers in long term under a contract and assurance of shipment. To maintain buyers confidence for gas reserve quantity, a 42” pipe line is added. Four parallel pipelines which able to ship 3600 million cubic feet (MMFSD) natural gas to the plant for further process.

Finally, Badak LNG plant become one of LNG plants with great experience in the world LNG industry, and become a vital asset for Indonesian LNG business chain. With all abilities, and experience of more than 35 years in producing LNG, PT Badak NGL ready to face any challenge in the 21st century, with strong and continuous support from all parties involved in LNG business.