Eni (Italy) has taken the Final Investment Decisions (FIDs) for the Gendalo and Gandang gas project (South Hub) and for the Geng North and Gehem fields (North Hub) in Indonesia, 18 months after the approval of the Projects of Development (PODs) in 2024 (Eni press release, 18/03/2026).
The combined volumes in place for the two projects amount to nearly 283 bcm (10 Tcf) of gas initially in place, with 550 million barrels of associated condensate. The two projects are expected to start up in 2028, and Eni will reach a production plateau of 57 bcm/year (2 bscfd) of gas and 90 kb/d of condensate in 2029. The gas will be transported onshore via an export pipeline to a receiving facility feeding both the existing domestic pipeline network and the Bontang LNG plant. The LNG produced will supply both domestic demand and international markets.
The development plan also includes extending the operating life of the Bontang LNG plant by reactivating one of its currently idle liquefaction trains (Train F).
“Both projects will form part of the assets Eni intends to contribute to the ongoing business combination with Petronas, aimed at creating a new company that is expected to produce more than 500 kboe/d by 2029”, according to the company’s press release.
The rapid growth in Indonesia's natural gas production observed during the 1990s (6%/year) slowed significantly over the 2000s due to depleting fields (0.6%/year between 2000 and 2008), and declined steadily from 2010 to 2023 (-3.4%/year). However, natural gas production rebounded by 5% in 2024, reaching 72 bcm (Enerdata Global Energy Research).