Mubadala Energy gas supply deal marks a key step in UAE-Indonesia energy ties. The company signed an agreement to supply natural gas to Pupuk Indonesia, the state fertilizer producer. Production will start from Mubadala Energy’s South Andaman Block after the Tangkulo-1 well becomes operational in late 2028.
Supply Targets Fertilizer Plants
Mubadala Energy commits 115 million standard cubic feet per day to Pupuk’s methanol plant. It adds 85 million standard cubic feet per day to the ammonia facility. This totals 200 million standard cubic feet daily to support Indonesia’s agriculture sector and fertilizer production needs.
Block Holds Vast Reserves
The South Andaman Block is located about 100 kilometers off Sumatra’s northern coast. It holds over 2 trillion cubic feet of gas reserves. The Tangkulo-1 well discovered this gas in 2023, which is central to the supply agreement and future production plans.
Strengthening Indonesia’s Energy Security
The gas supply from Mubadala Energy will help Indonesia reduce reliance on liquefied natural gas (LNG) imports and increase the use of domestic resources. The deal prioritizes energy supply for North Sumatra and Aceh provinces to boost local industries and electricity reliability. Mubadala Energy’s partnership with PLN Energi Primer Indonesia (PLN EPI), a subsidiary of the national electricity supplier, confirms the strategic framework for supplying cleaner, domestically sourced natural gas. This move aligns with Indonesia’s broader energy transition goals aimed at sustainability and security.
Expanding Mubadala Energy’s Regional Role
Mubadala Energy is expanding its footprint in Southeast Asia through this strategic gas supply deal to reduce reliance on liquefied natural gas. The company is committed to supporting Indonesia’s energy future by providing reliable gas supplies that meet domestic demand and strengthen national energy security. The collaboration with PLN EPI also underscores the potential for long-term partnerships, with ongoing discussions about technical and commercial frameworks linked to the Tangkulo gas project development. Mubadala Energy’s vision includes leveraging its offshore gas discoveries to support Indonesia’s cleaner energy transition and to foster a more robust and resilient energy system in the region.
