PLN Secures 160 Million Cubic Feet of Gas from Andaman Block

Mubadala Energy has officially signed a Gas Sales Agreement (PJBG) with PT PLN (Persero) to supply energy for power plants from the Andaman Block. The cooperation covers the distribution of 160 million cubic feet per day (MMSCFD) of gas. Head of SKK Migas Djoko Siswanto explained that the agreement fulfils the requirements for the project’s Final Investment Decision (FID). He stressed that the PJBG guarantees certainty of domestic gas supply sourced from the Tangkulo Field. “Alhamdulillah, the PJBG/GSA between the Mubadala Cooperation Contract Contractor and PLN for 160 MMSCFD of Andaman gas has just been signed for FID purposes. God willing, the FID will be completed in the near future, with a planned onstream date of 2028, faster than Masela,” he said in a written statement on Tuesday. The project is targeted to begin production in 2028 by utilising gas reserves from the Tangkulo Field, which are estimated to reach 1 trillion cubic feet (TCF). In addition to the portion for PLN, the authorities are currently mapping potential absorption for the remaining production of 140 MMSCFD to optimise the findings in the block. “The other 140 MMSCFD is currently being sought for gas buyers and its management concept. So the total is 300 MMSCFD from the Tangkulo Field with gas reserves of 1 TCF,” Djoko continued. The construction of facilities in the Andaman Block is designed using a hybrid scheme that combines offshore and onshore infrastructure. The process of separating gas content, condensate, and impurities is carried out using an FPSO vessel at sea before the clean gas is sent to land via an 80-kilometre subsea pipeline. “Gas from the offshore wells in Andaman cannot be brought directly to land because it contains quite high levels of CO2 and also H2S, which is very corrosive and can make pipes quickly rust, leak, and become brittle, so the CO2 and H2S must be separated first,” he explained. Meanwhile, the onshore production facility, or Onshore Receiving Facility (ORF), is planned to be built in the Arun Special Economic Zone (KEK), Lhokseumawe, and has received approval from the State Asset Management Agency (LMAN). The Andaman Block is currently operated by Mubadala Energy with an 80% participating interest, while Harbour Oil holds 20% under a gross split contract scheme. “Please pray and support us, ladies and gentlemen. God willing, going forward it will run smoothly, safely, and soundly according to the 2028 onstream target,” he concluded.