Italian energy giant Eni SpA says it has signed long-term agreements for the sale of natural gas produced from its operated projects in Indonesia’s Kutei Basin and liquefied at the existing Bontang facility.
The agreements for liquefied natural gas (LNG) produced using feed gas from the North Hub and South Hub projects, on which Eni recently made a final investment decision (FID), amount to about 2 million metric tons a year, the Italian state-controlled company said in a press release.
“LNG will be supplied through the existing Bontang LNG facilities in East Kalimantan, including through the reactivation of one train that has been idle for several years, thereby maximising the utilisation of Indonesia’s existing energy infrastructure.
“These additional LNG volumes will further diversify and strengthen Eni’s global integrated portfolio, supporting the company’s objective of reaching over 20 MTPA [million metric tons per annum] of contracted LNG supply by 2030.
“The agreements confirm Eni’s integrated growth strategy, combining upstream gas development, efficient LNG infrastructure utilization, and global market access, while supporting the region’s growing energy needs,” Eni said. The agreements for liquefied natural gas produced using feed gas from the North Hub and South Hub projects amount to about two million metric tons a year.
Earlier this year Eni reached FIDs to proceed with the North Hub and South Hub projects. North Hub consists of the Geng North and Gehem fields, under the North Ganal production sharing contract (PSC) and Rapak PSC respectively.
South Hub involves the Gandang and Gendalo fields in the Gandang PSC. Expected to go online 2028, the developments are designed to add up to 2 billion cubic feet per day of gas and 90,000 barrels per day (bpd) of condensate to Eni’s production capacity, it said in a press release March 18.
Eni expects to reach peak production at the new hubs in 2029. “The Gendalo and Gandang development plan, in water depths ranging from 1,000-1,800 meters, includes the drilling of seven producing wells and the installation of deepwater subsea production systems tied back to Jangkrik FPU [floating production unit].
