The Gendalo and Gandang gas project, also referred to as the South Hub, is a combined offshore development in Indonesia led by Italian energy company Eni.
The fields sit within the Ganal production sharing contract (PSC), which is owned by Eni (82%) and Sinopec (18%).
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Eni originally held a 20% non-operated interest in the Ganal and Rapak PSC (also located offshore Indonesia). In July 2023, the company acquired a 62% operating interest in the Ganal PSC from Chevron, along with 62% in the Rapak PSC and 72% interest in the Makassar Straits PSC (72%).
A final investment decision (FID) for the South Hub alongside the Geng North and Gehem fields, known as the North Hub, was taken in March 2026.
Across the two developments, Eni is targeting a plateau of two billion cubic feet per day (bcf/d) of gas and 90,000 barrels per day (bpd) of condensate in 2029.
Start-up for the Gendalo and Gandang gas project is planned for 2028, with the liquefied natural gas (LNG) intended to support domestic demand while also supplying export markets.
Gendalo and Gandang gas project location and reserves
The Gendalo and Gandang gas project lies in the Ganal PSC located within the Kutei Basin offshore East Kalimantan, Indonesia, in water depths of 1,000m to 1,800m (3,281ft to 5,905ft). Eni also operates the Merakes Gas Field in East Kalimantan.
The Ganal PSC is among 19 blocks, including 14 in Indonesia and five in Malaysia, that will be combined and managed by Searah, a jointly controlled company created by Eni and Petronas in June 2026.
The Gendalo and Gandang development is estimated to contain around two trillion cubic feet (tcf) of natural gas reserves.
Discovery and appraisal of the Gendalo and Gandang fields
The Gandang field was discovered in 1999 following drilling of the Gandang-1 well, with the nearby Gendalo field discovered in 2000 through the Gendalo-1 well.
At Gendalo, the discovery well found 242ft (73.76m) of net gas pay, while Gandang-1 recorded 136ft of net gas pay.
Appraisal drilling followed in early 2002. The Gendalo-3 appraisal well encountered 102ft of net pay and tested at 30 million cubic feet per day (mcf/d) of natural gas with two million barrels per day (mbbl/d) of condensate.
In the northern area, the Gandang-2 appraisal well encountered 185ft of net gas pay and is positioned 2.2 miles (3.5km) south of the Gandang 1 discovery well.
Gendalo and Gandang gas project details
The development plan for Gendalo and Gandang covers seven production wells and deep-water subsea production systems tied back to the Jangkrik floating production unit (FPU).
The Jangkrik FPU is a barge-shaped facility with treatment capacity of 450mcf/d of gas and condensates. Processed gas is transported via a 79km pipeline to an onshore receiving facility, before moving through the East Kalimantan transportation system to the Bontang gas liquefaction plant, also in East Kalimantan.
Offtake agreement details
In May 2026, Eni signed three long-term agreements with LNG sellers in Indonesia covering the purchase of LNG from the South Hub and North Hub projects.
The contracts cover LNG from Eni-operated developments in the Kutei Basin with a combined supply of approximately two million tonnes per annum (mtpa). Deliveries will be handled through the existing Bontang LNG facilities, including the reactivation of a train that has been idle for several years.
Contractors involved
Institut Teknologi Sepuluh Nopember (ITS) was engaged to review the technical front-end engineering design (FEED) for the project by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), an organisation established by the Indonesian government to oversee upstream oil and gas activities.
