Kuwait's Kufpec gets OK to develop Indonesian gas field

Spanish Market: Crude oil, Natural gas
16/05/25

Kuwait's Kufpec, a unit of state-owned KPC, has won approval from the Indonesian government for a plan of development for the Anambas gas field located in the West Natuna Sea offshore Indonesia.

The Anambas field is located in the Natuna basin and has an estimated gas output of about 55mn ft³/d. Kufpec will invest around $1.54bn into the development of the field, which is planned to come on stream in 2028.

The approved plan of development outlines a phased strategy to unlock the gas and condensate potential of the field, said upstream regulator SKK Migas. The regulator will encourage Kufpec to accelerate efforts and bring the project on stream by the fourth quarter of 2027, said the head of SKK Migas, Djoko Siswanto.

The development of the field will include drilling production wells and installing subsea pipelines to transport gas from Anambas to existing facilities in the West Natuna transportation system.

Kufpec in 2022 announced the discovery of gas and condensate at the Anambas-2X well in the Anambas block. The Anambas block was awarded to Kufpec Indonesia in 2019 through a bidding process. The company holds a 100pc participating interest in the block and has a 30-year production sharing licence, including a six-year exploration period.

The approval of the plan of development marks a step towards the project's final investment decision. It also shows that the upstream oil and gas sector in Indonesia is still attractive to domestic and foreign firms, said Djoko. The field is expected to be able to transport gas to domestic and regional markets, support Indonesia's energy security, and drive economic growth, according to SKK Migas.

Indonesia continues to prioritise oil and gas expansion to maintain economic growth. Investment in oil and gas rose from $14.9bn in 2023 to $17.5bn in 2024, according to the country's energy ministry.

By Prethika Nair

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12/06/25

Spanish May industrial gas use hits multi-year low

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EPA readies new biofuel blend mandate proposal

12/06/25

EPA readies new biofuel blend mandate proposal

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UK ETS emissions fell by 11pc on the year in 2024

12/06/25

UK ETS emissions fell by 11pc on the year in 2024

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Malaysia’s oil, gas projects to emit 4bn t GHG: CREA

12/06/25

Malaysia’s oil, gas projects to emit 4bn t GHG: CREA

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Japan’s Jera signs LNG supply agreements with the US

12/06/25

Japan’s Jera signs LNG supply agreements with the US

Singapore, 12 June (Argus) — Japanese power producer Jera has signed multiple long-term LNG supply agreements with US partners over the past two months, to procure up to 5.5mn t/yr of LNG supply from the US over 20 years, the firm announced on 12 June. The agreements include a 2mn t/yr sales and purchase agreement (SPA) with US LNG firm NextDecade on 28 April, and a 1mn t/yr SPA with US developer Commonwealth LNG on 30 May. Jera has also signed non-binding interim agreements with Sempra Infrastructure — a subsidiary of US energy firm Sempra — for 1.5mn t/yr on 29 May, and with developer Cheniere for 1mn t/yr on 11 June. The deals offer competitive pricing and flexible contract terms. All supply will be delivered on a fob basis priced to the US' Henry Hub, allowing Jera to optimise shipping routes and respond flexibly to domestic demand and market conditions, the company said. If the four deals are considered as a single package of 5.5mn t/yr of supply, it is Jera's largest contract to date, senior managing executive officer Ryosuke Tsugaru said. The new agreements add to Jera's existing offtake contracts with the US, which include a combined 3.5mn t/yr of LNG from Texas' Freeport LNG and Louisiana's Cameron LNG, and approximately 1mn t/yr of LNG from developer Venture Global's CP2 project in Louisiana. US supplies could account for 30pc of Jera's long-term LNG portfolio in 2035, up from 10pc at present, a Jera spokesman told Argus . But Jera does not intend to increase its planned LNG handling volume of no less than 35mn t/yr up to the April 2035-March 2036 fiscal year, as some of its existing contracts are set expired in the middle of the 2030-31 fiscal year, Tsugaru said. The potential increase in Japan's US LNG procurement should help reduce the US' trade deficit with Japan, which could aid Tokyo's negotiations over import tariffs with the US administration. But Jera emphasised that neither Tokyo or Washington had requested or pressured it to sign the new supply contracts. The deals were Jera's decision to ensure stable supplies to Japan, Jera said. The Japanese government could use the US' proposed 20mn t/yr Alaska LNG export project as part of its tariff negotiations, as Alaska's proximity to Japan and its ample resources make it a promising import source for the east Asian country. Jera is waiting for more details to be announced about the project before it makes a decision on whether to step into an offtake deal, Tsugaru said. Jera dose not plan to invest in the development of the project, he added. Japan's LNG imports from the US rose by 15pc on the year to 6.34mn t in 2024. By Motoko Hasegawa and Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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