Eni announced on Thursday the signing of the deals with the LNG sellers of the South Hub and North Hub gas projects, both operated by Eni with a material participating interest averaging in excess of 80 percent across the 2 hubs.
According to Eni, the long-term agreements relate to LNG volumes coming from Eni-operated gas development projects in the Kutei Basin and have cumulative volumes of approximately 2 million tons per year (mtpa).
Eni said LNG would be supplied through the existing Pertamina-operated Bontang LNG facilities in East Kalimantan, including through the reactivation of one train that has been idle for several years, thereby maximizing the utilization of Indonesia’s existing energy infrastructure.
Also, these additional LNG volumes will further diversify and strengthen Eni’s global integrated portfolio, supporting the company’s objective of reaching over 20 mtpa 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 and the energy transition through reliable lower-carbon energy supplies,” Eni said.
Eni did not provide further details regarding the agreements.
New gas find
The company recently said that its newest Indonesian gas find could potentially enable the reactivation of additional liquefaction trains at the Pertamina-operated Bontang LNG terminal.
The new Geliga‑1 discovery is located next to the undeveloped Gula gas discovery, estimated at approximately 2 Tcf of gas in place and 75 million barrels of condensate.
Early evaluations indicate that, when combined, Geliga and Gula could underpin incremental production of around 1,000 mmscfd of gas and 80,000 bpd of condensate, Eni said.
Eni said the new plan of development aims to enable the fast‑track development of a third production hub in the prolific Kutei Basin, alongside the Gendalo and Gandang gas project (South Hub) and the Geng North and Gehem fields (North Hub), by leveraging the development concept currently being implemented for the North Hub project.
Studies are underway to assess liquefaction capacity at the Bontang plant beyond that already included in the North Hub POD, potentially enabling the reactivation of up to two additional LNG trains currently out of service, Eni said.
Last year, Pertamina’s Bontang LNG export facility in Indonesia’s East Kalimantan shipped its 10,000th cargo of LNG since 1977.
The eight-train facility has a production capacity of about 22.5 mtpa.
However, its production has been decreasing during the last two decades due to a lack of natural gas supplies.
According to Badak LNG, the operator of the facility, three out of eight liquefaction trains are currently operational.