Mubadala Energy and PLN EPI Sign Strategic Gas Sales Agreement

Enhancing Indonesia's Energy Security

Mubadala Energy, an international energy company based in Abu Dhabi, and PT PLN Energi Primer Indonesia (PLN EPI), a subsidiary of PLN focusing on primary energy supply, have signed a significant Heads of Agreement (HoA) for the sale and purchase of gas from the Tangkulo field located in the Andaman Sea. This landmark agreement represents a crucial step in Indonesia's energy sector development.

Key Elements of the Agreement

The HoA marks a strategic partnership between Mubadala Energy and PLN EPI to enhance Indonesia's energy resilience and security by prioritizing cleaner domestic natural gas. The Tangkulo gas field, situated approximately 65 kilometers offshore North Sumatra, boasts reserves exceeding 2 Trillion Cubic Feet (TCF). The gas supply will primarily serve the energy needs of North Sumatra and Aceh regions, contributing to the reliability of electricity supply and supporting Indonesia's energy transition goals.

Strategic Implications

President Director of Mubadala Energy Indonesia, Abdulla Bu Ali, emphasized that this agreement reflects their commitment to Indonesia's energy future. The partnership aims to deliver reliable and sustainable energy solutions to meet domestic demand while strengthening national energy security. The development of the Tangkulo gas field is a critical component of this strategy, representing a significant step forward in the South Andaman Block project.

Future Outlook

This collaboration between Mubadala Energy and PLN EPI is expected to play a vital role in Indonesia's energy landscape by ensuring a stable supply of natural gas, supporting electricity generation, and contributing to the country's energy transition objectives. The successful implementation of this agreement will not only benefit the targeted regions but also contribute to the overall energy security of Indonesia.