Mubadala Energy and PLN Energi Primer Indonesia (PLN EPI) have signed a heads of agreement to supply gas from the Andaman Sea as part of efforts to strengthen Indonesia’s energy security.
The agreement establishes a framework for supplying cleaner, domestically sourced natural gas to support electricity reliability and the country’s transition to lower-carbon energy.
It prioritizes deliveries to North Sumatra and Aceh and includes potential production from the Tangkulo gas field, located about 65 kilometres off northern Sumatra, which holds more than 2 trillion cubic feet of reserves.
The deal aligns with Indonesia’s strategy to optimise domestic resources and build a more robust energy system while progressing its clean-energy transition.
Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, said the deal reflects the company’s commitment to Indonesia’s energy future. By working with PLN EPI, the aim is to deliver reliable and sustainable energy solutions to meet domestic needs and reinforce national energy security.
“This is also an important step in the development plan for the Tangkulo gas project in the South Andaman Block,” Abdulal Bu Ali added..
Indonesia’s energy demand, particularly in the power sector, is expected to grow around 5.3% annually through 2034, requiring infrastructure expansion and diversification of supply sources.
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