Eni’s Geng North Gas Project to Begin Production in 2027, Says Indonesian Regulator.
Indonesia anticipates that Eni’s nearly $12 billion Geng North gas project will commence production in late 2027, marking one of the fastest developments in the country’s history. Dwi Soetjipto, the chairperson of Indonesia’s upstream oil and gas regulator, SKK Migas, shared this information in an interview with Reuters on Wednesday.
Discovered in 2023, the Geng North gas field’s expedited development is expected to serve as a model for future gas projects in Indonesia, a nation abundant in natural resources. The project, along with new development plans for nearby Gehem, Gendalo, and Gandang fields, is part of the Indonesia Deepwater Development (IDD) project, which Eni acquired from Chevron last year.
To streamline the development process and minimize bureaucratic delays, SKK Migas formed a dedicated team to work directly with Eni during the project’s development and design phase. This collaborative approach is seen as a potential blueprint for future projects in the country.
The availability of an existing LNG plant in East Kalimantan is another factor accelerating the project, cutting the development timeline by approximately three years. Eni plans to integrate the Geng North’s 5 trillion cubic feet (Tcf) of gas with the Gehem gas project, creating a Northern Hub production area. The gas from this hub will be transported via a floating facility, piped onshore through the East Kalimantan pipeline network, and liquefied at the Bontang LNG plant.
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While Eni has not yet commented on the projected 2027 startup date, the regulator is optimistic about achieving this timeline. SKK Migas also hopes for a similar accelerated development for the South Andaman block, held by the UAE’s Mubadala Energy, with production targeted to begin in 2028.
The Geng North project and other recent discoveries, such as those by Eni and Mubadala, have significantly renewed interest in Indonesia as a destination for energy exploration. Once a member of OPEC, Indonesia’s oil and gas output had been in decline, but these new developments signal a potential resurgence in the sector.
Dwi highlighted the strategic importance of the Geng North project, emphasizing its potential to revitalize Indonesia’s oil and gas industry and reestablish the country as a key player in global energy exploration.
