Mubadala Energy is set to imminently submit the Plan of Development (POD) for its Tangkulo gas field offshore Indonesia, following the signing of a key Heads of Agreement (HoA) for gas sales. This agreement with PLN Energi Primer Indonesia (PLN EPI) prioritizes energy supply for North Sumatra and Aceh and serves as the basis for further technical and commercial discussions.

Project Development and Timeline

The POD for the Tangkulo field, holding over 2 trillion cubic feet of gas, will be submitted to regulator SKK Migas, which has committed to completing its review within a month. The final investment decision is targeted for June of the following year, with production start-up slated for the fourth quarter of 2028. The field will be developed using a floating production, storage and offloading vessel, with FEED contracts for this and other packages expected to be awarded soon.

Infrastructure and Market Focus

The initial development phase focuses on pipeline gas sales to the domestic market, where demand is growing in Aceh and North Sumatra for power generation and the fertilizer sector. This aligns with government plans to construct a major gas pipeline from Sei Mangkei to Dumai, with a capacity of up to 400 million cubic feet per day and a targeted operational start in 2027. A second development phase could potentially involve an LNG project, leveraging other discoveries in the area.

Strategic Importance and Collaboration

The partnership between Mubadala Energy and PLN EPI aims to enhance Indonesia's energy security and resilience by optimizing domestic natural gas for electricity supply and supporting the energy transition. The collaboration combines Mubadala's global expertise with PLN EPI's domestic capabilities to meet Indonesia's growing energy demand, which is projected to increase by an average of 5.3% annually until 2034.