Mubadala Energy Considers Selling South Andaman Gas Domestically
Deal News | May 21, 2025 | Zawya
Mubadala Energy is open to supplying natural gas from its south Andaman block to meet Indonesia's domestic demand, contingent on favorable pricing. As domestic gas prices currently face caps ranging from $6.50 to $7 per mmBtu, significantly lower than the $11.75 per mmBtu observed in Asia's LNG spot market, producers are prioritizing exports. Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, emphasized the need for competitive pricing without specifying an exact figure. This intent aligns with Indonesia’s push for increased domestic gas consumption amid rising demand. Mubadala intends to begin gas production at the south Andaman block in late 2028 and has already signed a preliminary agreement with state fertilizer company Pupuk Indonesia.
Sectors
- Energy
- Chemicals
Geography
- Indonesia – The primary location of the article's subject, highlighting the nation's increasing domestic gas demand and regulatory environment.
- United Arab Emirates – The home base for Mubadala Energy, the company evaluating the gas sales.
Industry
- Energy – The article discusses Mubadala Energy's potential sale of natural gas, highlighting the company's role as a gas producer and explorer.
- Chemicals – Involves Pupuk Indonesia, a state fertilizer manufacturer, indicating an interest in procuring gas.
Financials
- $6.50-$7 per mmBtu – Current cap on domestic gas prices in Indonesia.
- $11.75 per mmBtu – Recent LNG spot price in Asia.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mubadala Energy | Potential Gas Seller | Company | A UAE-based energy company considering sales of natural gas from its south Andaman block. |
| Abdulla Bu Ali | President Director of Mubadala Energy Indonesia | Person | Senior executive of Mubadala Energy overseeing the operations and strategy in Indonesia. |
| Pupuk Indonesia | Gas Purchaser | Company | Indonesian state-owned fertilizer producer interested in purchasing gas from Mubadala. |
| Indonesian Government | Regulatory Body | Government | Sets regulations and price caps for domestic gas consumption. |