The UAE Mubadala Energy has signed an initial agreement to supply gas to state fertiliser maker Pupuk Indonesia, a spokesperson for Mubadala said.
Mubadala Energy will supply 115 million standard cubic feet per day (mmscfd) to Pupuk's methanol plant and 85 mmscfd to its ammonia plant, Paul Slinger said on the sidelines of an industry conference organised by the Indonesia Petroleum Association.
The gas is expected to be delivered once production begins at Mubadala Energy's South Andaman Block, with the Tangkulo-1 well expected to start producing in late 2028, Slinger said.
Mubadala Energy announced last year that its Tangkulo-1 exploration well had found gas in the South Andaman Block, located around 100 km (62 miles) off northern Sumatra, with a potential of more than 2 trillion cubic feet (tcf) of gas-in-place.
It followed another discovery at the Layaran-1 well, within the same block, with the potential for more than 6 tcf of gas-in-place, which analysts said was the world's second-largest deep water discovery in 2023. -Reuters