Mubadala Energy, a major energy company based in the United Arab Emirates, has entered into a preliminary agreement with Indonesia’s state-owned fertilizer giant, Pupuk Indonesia, to supply natural gas for industrial use. Paul Slinger, Head of Communications at Mubadala Energy, announced the deal during an industry event hosted by the Indonesia Petroleum Association.
Under the terms of the agreement, Mubadala Energy will provide a total of 200 million standard cubic feet per day (mmscf/d) of natural gas to Pupuk’s manufacturing facilities. Of that, 115 mmscf/d will be allocated to Pupuk’s methanol plant, while the remaining 85 mmscf/d will be directed to its ammonia plant. This partnership is seen as a key development in enhancing Indonesia’s fertilizer production capabilities, which rely heavily on natural gas as a primary feedstock.
This move aligns with Indonesia’s broader push to secure reliable energy supplies for its growing industrial sector, while also reinforcing Mubadala’s presence in Southeast Asia’s energy landscape.
Gas Supply Linked to South Andaman Block Development
The gas supply agreement is tied to Mubadala Energy’s exploration and future production activities in the South Andaman Block, located offshore in Indonesia. Production will begin with the Tangkulo-1 well, which is expected to come online by the end of 2028. Slinger confirmed that the gas deliveries to Pupuk Indonesia will commence once this production begins.
Mubadala Energy had previously announced the discovery of significant gas reserves at Tangkulo-1, estimating over 2 trillion cubic feet (tcf) of gas in place. This followed another major find at the Layaran-1 well within the same block, which holds an estimated 6 tcf of gas in place. These findings highlight the substantial potential of the South Andaman Block and could position Indonesia as a more prominent player in the regional natural gas market.
The successful development of these reserves is expected to significantly contribute to Indonesia’s domestic energy supply and industrial growth, while supporting Mubadala’s expansion strategy in Southeast Asia.
Mubadala’s Global Energy Expansion and Regional Impact
Mubadala Energy is recognized as a major player in the international energy sector, with assets and operations spread across 11 countries. Its strategic focus areas include the Middle East and North Africa (MENA), Russia, and Southeast Asia. The latest agreement with Pupuk Indonesia strengthens Mubadala’s footprint in the region and showcases its role in facilitating industrial development through sustainable energy solutions.
The partnership is not only a testament to Indonesia’s attractiveness for international investment in energy infrastructure but also underlines Mubadala Energy’s commitment to long-term regional collaboration. As the South Andaman Block moves toward production, both companies stand to benefit from increased operational synergy and energy security.
Industry experts view this deal as a positive signal for Indonesia’s upstream gas sector, potentially paving the way for further foreign investment and energy partnerships in the years ahead.
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