SEATTLE (Oil Monster): Eni SpA has signed long-term sales agreements for liquefied natural gas (LNG) produced from Kutei Basin projects in Indonesia. This marks a major step in the country’s efforts to strengthen its global gas portfolio.
The agreements cover around 2 million metric tons per annum (MTPA) of LNG sourced from the company’s North Hub and South Hub developments, both of which recently reached final investment decision. The sourced LNG will be processed through the existing Bontang LNG facility in East Kalimantan.
ALSO READ:
Global LNG "Scramble" Intensifies as Hormuz Strait Remains Closed
Poland moves closer to second LNG terminal with FSRU launch
The projects are expected to begin production in 2028, adding up to 2 billion cubic feet per day of gas and 90,000 barrels per day of condensate, with peak output anticipated in 2029. Combined, the projects hold nearly 10 trillion cubic feet of gas and 550 million barrels of condensate.
According to the company, the agreements will help it to reach the goal of exceeding 20 MTPA of contracted LNG supply by 2030.
The company is also advancing plans for a third production hub in the Kutei Basin following the recent Geliga-1 gas discovery, further reinforcing Indonesia’s role in Eni’s long-term LNG growth strategy.
Earlier this year, the company reached agreements to proceed with the North Hub and South Hub projects. The North Hub consists of the Geng North and Gehem fields, whereas the South Hub involves the Gandang and Gendalo fields in the Gandang PSC.
