Indonesia's Jangkrik FPU Set for Major Gas Output Boost

(Credit: Eni)

Indonesia boosted gas supplies to the Jangkrik Floating Production Unit (FPU) in the Kutai Basin on Thursday, with production expected to increase to 750 million standard cubic feet per day (mmscfd) by November.

Energy minister Bahlil Lahadalia, who attended the inauguration ceremony, said an additional 290 mmscfd of gas will be supplied to the facility from the Jangkrik Northeast 6 well and the Maha field in the Kutai Basin in offshore East Kalimantan.

The expansion is part of the South Hub gas project run by Searah, a joint venture between Italian explorer Eni and Malaysia's state energy firm Petronas.

Mirko Araldi, chief executive of Searah, said the company aim to produce 3 billion cubic feet of gas per day and 140,000 barrels of condensate per day by 2029, when the Gendalo and Gandang projects will start production, with their output also to be processed by the Jangkrik FPU.

Bahlil said the government would prioritise domestic gas demand and plans to develop a petrochemical hub in East Kalimantan using gas as feedstock.

"One of the giant discoveries that we are bringing into production will be prioritised for domestic needs," he said.

Bahlil said he would review export contracts with countries that are "not cooperative and do not treat Indonesia with mutual respect".

"I will conduct an evaluation and will not hesitate to consider halting exports to countries that do not respect Indonesia," Bahlil said, without elaborating.

(Reuters - Reporting by Bernadette Christina; Editing by David Stanway)