Mubadala Energy and Perusahaan Listrik Negara (PLN) Signed Collaboration Agreement to Explore Harnessing Natural Gas Discoveries
Abu Dhabi - Mubadala Energy, the Abu Dhabi-headquartered international energy company, and Perusahaan Listrik Negara (PLN), an Indonesian state-owned electricity company, have today signed a Memorandum of Understanding (MoU) to explore the study of potential strategic collaboration in both gas utilization and infrastructure development.
The agreement will assess the opportunities for natural gas utilization as a low-emission fuel alternative for PLN’s power generation from the South Andaman blocks operated by Mubadala Energy, located in the offshore northern part of North Sumatra, Indonesia. It follows the recently announced gas discoveries at the Layaran and Tangkulo fields in South Andaman, which amount to over 8 TCF of gas in place.
This collaboration initiative aims to harness the full potential of the region's natural gas resources to meet growing primary energy demand while fostering infrastructure growth that benefits both businesses and local communities. It establishes a framework for the companies to conduct a joint study, examining the opportunities to develop natural gas resources for power generation. It also sets out the parameters to explore the infrastructure enhancements needed to support gas processing, transportation, and local economic growth to support Indonesia’s energy security and transition goals.
Commenting on the agreement, Mansoor Mohamed Al Hamed, Managing Director & CEO of Mubadala Energy, said: "This is an important step forward in realizing our shared vision of sustainable energy development. We believe that by working together, we can unlock the full potential of the South Andaman block, bringing significant value to both companies and the region."
Echoing these sentiments, Darmawan Prasodjo, President and Director of PLN, added, "PLN is fully committed to developing greener energy to ensure a better future for the next generation. This partnership serves as a concrete example. We must collectively address the global issue of climate change. Therefore, PLN cannot bear this burden alone; the only way to move forward is through collaboration."
The collaboration aligns with Indonesia's broader energy goals, supporting sustainable growth and contributing to national energy security. Furthermore, it reflects a shared commitment to innovation, sustainable development, and value creation, in line with the drivers of the energy transition and the Indonesian net zero emissions target in 2060 or sooner.
