Indonesia begins construction of deepwater gas hub to boost energy development

Indonesia has begun construction of the Makassar Strait North Hub, a major offshore energy project designed to unlock large-scale natural gas resources and support long-term economic growth, as reported by VNA, a TV BRICS partner.

Located in the waters off East Kalimantan, the strategic development will combine production from two ultra-deepwater gas fields in the Kutai Basin, creating one of Indonesia’s most advanced offshore energy facilities.

The project represents an investment of around US$15 billion, including approximately US$3 billion for the construction of a floating production, storage and offloading (FPSO) facility, along with a further US$12 billion in associated development spending.

The planned offshore production vessel, named Bahtera Haluan Lestari, will become Indonesia’s first ultra-deepwater production facility. Designed to operate at sea depths of up to 2,000 metres, the 300-metre-long vessel will have the capacity to process up to 1 billion standard cubic feet of natural gas per day and around 80,000 barrels of condensate daily.

The FPSO will also feature storage capacity of approximately 1.4 million barrels, allowing the facility to support continuous offshore operations in challenging deepwater conditions.

The development is expected to play an important role in expanding Indonesia’s domestic energy capacity while supporting industrial growth and regional economic activity.

Construction and preparation activities are now progressing towards the project’s production phase, with first gas targeted for the fourth quarter of 2028.