Mubadala Energy signs supply agreement with PLN EPI to advance Indonesia’s gas security

Delegrates from Mubadala Energy and PLN Energi Primer Indonesia at HOA signing/Image: Supplied

Mubadala Energy, the Abu Dhabi-headquartered international energy company, has signed a Heads of Agreement (HoA) with PLN Energi Primer Indonesia (PLN EPI), a subsidiary of Indonesia’s national electricity provider, to supply gas from its Andaman Sea fields. The agreement represents a major step forward for Indonesia’s energy sector as the country works to strengthen supply resilience and reduce reliance on imported LNG.

Under the proposed partnership, Mubadala Energy and PLN EPI will collaborate to improve energy security in Indonesia by prioritising domestic gas supply for North Sumatra and Aceh. A key component of the plan is the potential development of the Tangkulo gas field, located around 65 kilometres offshore North Sumatra, which holds more than 2 trillion cubic feet (TCF) of gas-in-place.

Abdulla Bu Ali, president director of Mubadala Energy Indonesia, said: “This agreement reflects our unwavering commitment to Indonesia’s energy future. By partnering with PLN EPI, we aim to deliver reliable and sustainable energy solutions that meet domestic needs and strengthen national energy security. This is also an important step for our development plans of the Tangkulo gas project in the South Andaman Sea.”

Indonesia is entering a pivotal period in its energy transition, with a growing need to diversify supply sources and upgrade infrastructure to support future demand. Mubadala Energy’s international operational expertise, combined with PLN EPI’s domestic reach and strategic role in the country’s power sector, positions the collaboration to help address long-term energy requirements.

Rakhmad Dewanto, president director of PLN Energi Primer Indonesia, said: “PLN EPI continues to support the development of new gas fields in Indonesia and welcomes the development of the Tangkulo gas field in the South Andaman Block by Mubadala Energy. This collaboration is also part of the development of a gas supply portfolio for the power sector to support energy security and the energy transition in Indonesia.”

The signing ceremony was attended by the chairman of SKK Migas, Djoko Siswanto, who emphasised the significance of the agreement, noting: “The signing of this HoA marks an important milestone in the development of the Tangkulo Project.”

The HoA establishes a framework for continued technical and commercial discussions. Mubadala Energy’s expanded role in supporting domestic gas supply underscores its long-term commitment to Indonesia, while PLN EPI continues to advance initiatives aimed at securing reliable, sustainable energy for the country.