Conrad Asia Energy has announced that PLN Energi Primer Indonesia (PLN EPI) has completed a “hot tap” connection to the West Natuna Transportation System (WNTS), facilitating a link to the Pemping gas pipeline project.
This delivery point will serve Conrad’s Mako gas field in Indonesia’s Natuna Sea. It is currently under development and is scheduled to commence production in the fourth quarter of 2027 (Q4 2027).
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The development is expected to strengthen gas transport infrastructure and supply for the Indonesian domestic market.
The “hot tap” process enabled the connection of a new pipeline to an existing operating line without stopping gas flow.
The work was carried out on a pipeline transporting around 300 million cubic feet per day (mcf/d) of gas at a pressure of 1,096 pounds per square inch (psi) and situated 29m underwater.
PLN EPI plans to start commissioning the pipeline this week, with initial deliveries of approximately 25mcf/d from existing Natuna Sea gas producers to support Batam’s power generation system.
A gas sales agreement was signed in July last year between PLN EPI and Conrad subsidiary West Natuna Exploration for up to 111mcf/d of sales gas during the period 2027–37.
Conrad has built facilities to process a maximum of 172mcf/d, with production capacity subject to the field’s performance, regional demand and additional prospects.
Conrad managing director and CEO Miltos Xynogalas said: “The connection of the West Natuna Basin into Batam is extremely important for Indonesia and the Natuna Sea gas producers.
“Conrad’s Mako gas field is currently the largest undeveloped gas field (2P [proved and probable] of 330 billion cubic feet, gross) in the West Natuna Basin.
“When production commences in late 2027, Mako will make a significant contribution to the strong energy demand in Batam and Sumatra. Gas into the region will improve energy security and reduce reliance on fuel oil with lower emissions.”
Conrad’s West Natuna Exploration, operator of the Duyung production sharing contract (PSC), has also signed binding contracts for the Mako field’s development.
A contract with PT PAL Indonesia covers engineering, procurement, construction and transport of the conductor support frame required for the project.
A separate agreement with Duta Marine/Pakarti Tirtoagung provides for a leased mobile offshore production unit. It includes the conversion of a jack-up drilling rig in Batam with a raw gas capacity of 172mcf/d and a bareboat charter running until January 2037, with extension options.
The Mako project consists of six development wells connected to the mobile offshore production unit, with gas sent through a 59km, 18in pipeline to the Kakap PSC’s KF platform and then through the West Natuna Transportation System to Indonesia.
Total capital expenditure to first gas is estimated at $320m, of which West Natuna Exploration’s share is approximately $80m (Rp1.44tn).
Contract terms include a $4m donor rig purchase, a $26m down payment for facility equipment and targeted annual operating costs of $70m–80m, inclusive of pipeline transport.
