‘Major’ Indonesian natural gas find announced
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Indonesia has come under pressure from soaring global energy prices since the Middle East war broke out.
PHOTO: BLOOMBERG
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JAKARTA – Italian energy giant Eni has announced a “major” discovery of natural gas off Indonesia’s coast, which the government said would triple the European company’s production in the country by 2028.
The South-east Asian archipelago already produces more gas than it uses, with rising demand for the commodity widely used for cooking, heating and electricity generation.
In a statement on April 20, Eni said preliminary estimates indicated the site some 70km off the coast of East Kalimantan province held about 141 billion cubic m of gas and 300 million barrels of condensate, a liquid hydrocarbon.
The new find, it added, “unlocks significant new volumes for domestic and international markets”.
The government said the find could boost Eni’s peak production to 56 million standard cubic m per day (MMSCMD) by 2028 and to 84 MMSCMD two years later.
It is between 17 and 20 MMSCMD as at April 21.
According to Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia, “this is a giant discovery”. “In addition to gas, by 2028 we will also be producing roughly 90,000 barrels of condensate. And in 2029 to 2030, that could increase further to 150,000 barrels.”
Higher condensate production will likely reduce oil imports, a government statement quoted him as saying.
Like many nations, Indonesia has come under pressure from soaring global energy prices since the Middle East war broke out. Last week, Indonesian President Prabowo Subianto met Russian counterpart Vladimir Putin at the Kremlin, where Jakarta said he made a deal on oil procurement, the details of which are being finalised.
Indonesia’s Foreign Ministry spokesman Vahd Nabyl Achmad Mulachela told AFP after the Moscow visit “there is no specific number that we have, but this is going to be long term for energy security”.
Mr Prabowo then went on to France for a meeting with French President Emmanuel Macron, where they agreed on cooperation in “energy transition and the development of new and renewable energy”, according to Jakarta.
South-east Asia’s largest economy, where fuel is heavily subsidised, is an oil producer but nevertheless a net importer.
Mr Prabowo’s government in March announced fuel rationing and mandated civil servants work from home every Friday to conserve energy stocks.
It has vowed not to increase the price of fuel in 2026, even though the subsidy budget was calculated on an oil price of US$70 per barrel. Crude is now sitting at around US$100 owing to the war.
In mid-April, the government increased the price of some non-subsidised fuel and gas.
Mr Bahlil said in March that about 30 per cent of Indonesia’s liquefied petroleum gas imports came from the Middle East, and the government would seek alternative suppliers.
According to the latest International Energy Agency numbers for Indonesia, natural gas made up a 15.6 per cent share of the country’s energy supply and 12.9 per cent of electricity generation in 2023.
The latest Eni find, Mr Bahlil said on April 20, “proves Indonesia still has significant opportunities to optimise its oil and gas potential as a pillar of national energy security and efforts to achieve energy self-sufficiency”. AFP
