Mubadala Energy and Perusahaan Listrik Negara Agree to Explore Natural Gas

Mubadala Energy, the Abu Dhabi-based international energy company, and Perusahaan Listrik Negara (PLN), Indonesia’s leading electricity distribution company, have recently signed a Memorandum of Understanding (MoU) to explore potential strategic collaboration in the areas of gas utilization and infrastructure development, as reported by several media reports. This agreement marks a significant step toward addressing Indonesia's growing energy demands while creating sustainable opportunities for local economic growth. The collaboration will primarily focus on assessing power generation opportunities from the South Andaman blocks, which are operated by Mubadala Energy and are located offshore in Northern Sumatra, Indonesia.

The timing of this agreement is particularly notable, as it comes after Mubadala Energy's recent gas discoveries at the Layaran and Tangkulo fields within the South Andaman area. These discoveries amount to over 8 trillion cubic feet (TCF) of gas in place, offering substantial potential for powering the region’s energy needs. With these reserves in mind, the collaboration seeks to harness the full potential of South Andaman’s natural gas resources, exploring how they can be used for power generation to meet the region’s growing demand for electricity.

The initiative also places a strong emphasis on supporting the development of the necessary infrastructure to facilitate gas processing, transportation, and local economic growth. This includes examining the improvements required in the region’s infrastructure to ensure the efficient transportation of gas and the establishment of processing facilities, which are essential for long-term energy security. The MoU sets the stage for a joint study to assess both the technical and economic feasibility of utilizing these natural gas resources, with a particular focus on enhancing Indonesia’s energy security and supporting the nation’s energy transition goals.

Mansoor Mohamed Al Hamed, the Managing Director and CEO of Mubadala Energy, highlighted the importance of this partnership, stating, "This is an important step forward in realizing our shared vision of sustainable energy development. By working together, we believe we can unlock the full potential of the South Andaman block, creating substantial value for both our companies and the region as a whole." Al Hamed’s remarks underscore Mubadala Energy’s commitment to sustainable energy development and the role of collaboration in advancing these goals.

Similarly, Darmawan Prasodjo, President Director of PLN, expressed his enthusiasm about the partnership, saying, "Our collaboration with Mubadala Energy underscores our commitment to enhancing Indonesia's energy landscape through strategic collaborations. We look forward to the study results, which will guide us in creating lasting economic and infrastructure benefits for Indonesia and beyond." This statement reflects PLN’s broader objectives to help meet the country’s energy needs while fostering economic growth through strategic partnerships.

The collaboration between Mubadala Energy and PLN is aligned with Indonesia’s broader energy goals, which focus on achieving sustainable growth, improving energy security, and supporting the country’s energy transition. Moreover, the partnership is in line with the energy transition efforts of both the Indonesian and UAE Governments, both of which have committed to ambitious net-zero targets. Through innovation and sustainable development, this partnership aims to create long-term value for both companies, the local communities, and the countries involved. By leveraging the vast natural gas reserves in South Andaman, Mubadala Energy and PLN are working together to support Indonesia’s future energy needs while contributing to global sustainability efforts.