The gas market in Southeast Asia has seen some of the largest energy companies boosting gas and LNG output capacity in recent months. With the new year right around the corner, the future of the LNG market has never looked this promising. Now, a major Abu Dhabi-based energy major has announced that the Indonesian deep-water gas development is moving one step closer to a final investment decision following recent developments. The Asian energy market has been growing at an astonishing rate and promises to grow even more in 2026 and beyond.
Mubadala Petroleum says the Tangkulo offshore project in Indonesia is advancing at a steady pace
In the global energy market, cooperation and investments from international energy companies can often make the difference between a project moving towards realization or not. The Abu Dhabi-based Mubadala Petroleum has now stated that the Tangkulo offshore project in Indonesia is one step closer to a final investment decision.
In recent months, the Southeast Asian energy sector has seen some tremendous growth as several projects gain momentum, setting the stage for the region’s gas and LNG supply to reach new capacity levels. The UAE-based energy major has said that the project is moving forward ‘ahead of schedule’, a rarity in the modern-day energy sector. The firm notes the key importance of the project as part of its strategic Andaman Sea position.
“Our multi-TCF discoveries in South Andaman present a significant growth opportunity for Mubadala Energy and the accelerated development timeline reflects the strategic importance of this project for Indonesia’s energy security. Mubadala Energy is committed to growth and our operations in Indonesia form a critical pillar of our portfolio expansion strategy.” – Mansoor Mohamed Al Hamed, Managing Director & CEO Mubadala Energy
All relevant development steps for the Tangkulo project are moving forward
The company has confirmed that the Front End Engineering Design (FEED) and Long Lead Item (LLI) contracts are moving forward, and that the project may receive the Plan of Development (POD) by the end of the year, with the expectation being that a Final Investment Decision is going to be made in June 2026, and first gas for the project expected to flow by late 2028.
The project picked up major momentum when, in 2024, the first gas discovery in the Tangkulo project was made. The project is located approximately 65 kilometres offshore, North Sumatra, in the South Andaman Gross Split PSC. The associated well was drilled to a total depth of 3,400 meters, which marks the second consecutive deepwater gas discovery with 2+TCF of gas-in-place for Mubadala Energy.
The project builds on Mubadala Energy’s already impressive portfolio in the region
Following the awarding of the Central Andaman block license, the Abu Dhabi Mubadala Energy now holds the largest net acreage position in the region, marking the stability and energy security that the project offers the Southeast LNG production sector. The accelerated pace of the project being developed ahead of schedule points to the efficiency of the LNG permitting by the government and associated regulators.
The global energy market has shifted its attention to the Southeast Asian sector
The impressive announcement that the Indonesian LNG project is moving ahead of schedule comes as the Southeast Asian energy sector has seen the world’s focus shift to the market, following years of being ignored and overlooked. For example, one only needs to look at Petronas kicking off a procurement drive for its offshore developments in Malaysia, and one can start to understand the role that the gas and LNG sector will play in the region’s energy future. The global energy market is in a constant state of evolution, and the future of the gas sector in particular is looking bright.
