Mubadala Energy and PLN EPI Forge Gas Supply Agreement
Abu Dhabi’s Mubadala Energy has entered into a preliminary agreement with PLN Energi Primer Indonesia (PLN EPI), a subsidiary of the state-run electricity provider PT PLN, aimed at enhancing Indonesia’s energy framework. According to a statement released by Mubadala Energy, the pact involves utilizing gas from its fields in the Andaman Sea. The focus will be on supplying energy to North Sumatra and Aceh, particularly from the Tangkulo gasfield, which Mubadala Energy is actively developing. Located approximately 65 kilometers offshore North Sumatra, Tangkulo is estimated to hold over two trillion cubic feet of gas reserves.
Commitment to Indonesia’s Energy Future
Abdulla Bu Ali, the president director of Mubadala Energy Indonesia, emphasized that this agreement underscores the company’s dedication to the future of Indonesia’s energy landscape. He referred to it as a significant advancement in the development of the Tangkulo gas project located in the South Andaman Sea. Mubadala Energy has been present in Indonesia since 2004 and recently reported notable advancements in its plans for Tangkulo, indicating that the project is progressing ahead of schedule. The company anticipates making a final investment decision by June 2026, with initial gas production expected in the fourth quarter of 2028.
Gas Discoveries and Domestic Energy Goals
The Tangkulo gas discovery, announced last May, involved drilling a well to a depth of 3,400 meters in waters measuring 1,200 meters deep, marking Mubadala Energy’s second deepwater gas find in succession. The company also reported finding gas at the Layaran site in the South Andaman block. Indonesia aims to increase its domestic gas consumption following new discoveries in the Andaman and North Bali-Lombok regions. As one of the largest coal exporters globally, Indonesia has set a target to derive at least 51 percent of its energy from renewable resources by 2030.
Collaboration to Reduce Liquefied Natural Gas Dependence
Through this partnership, Mubadala Energy and PLN EPI plan to assist Indonesia in diminishing its dependence on liquefied natural gas while developing sustainable solutions to meet the rising domestic energy demand. The companies will engage in further discussions regarding the technical and commercial aspects following the signing of the heads of agreement. Rakhmad Dewanto, president director of PLN EPI, expressed support for the development of new gasfields in Indonesia, highlighting the importance of the Tangkulo gasfield in enhancing the gas supply portfolio for the power sector, thereby contributing to energy security and the energy transition in Indonesia.
