Indonesia approves $3.07 billion for Tuna

Indonesia approves the first development plan for the Tuna offshore gas field. With an estimated total investment of $3.07 billion until production begins. The project is expected to assert Indonesia's sovereignty in the South Sea, which is subject to numerous tensions with China.

Partagez:

Located in the South China Sea between Indonesia and Vietnam, it is expected to reach a peak production of 115 million standard cubic feet per day (MMSCFD) in 2027 according to SKK Migas spokesman Mohammad Kemal.

A local unit of Harbour Energy operates the natural gas in the Tuna field. The British company is accelerating its development abroad through various projects. Tuna should then be exported to Vietnam from 2026. Discovered in April 2014, the Tuna oil field has about 100 million barrels of oil equivalent.

SKK Migas chairman Dwi Soetjipto said Monday that apart from the economic benefits, the development of the project would highlight Indonesia’s maritime rights.

“There will be activities in the border area which is one of the geopolitical hot spots in the world. The Indonesian Navy will also participate in securing the upstream oil and gas project so that economically and politically it becomes an assertion of Indonesia’s sovereignty.”

Tensions over sovereignty in the South Sea

China claims sovereignty over most of the South China Sea, citing its own historical maps. However, an international arbitration tribunal says in 2016 that there was no legal basis. In addition, in 2021, China is asking Indonesia to stop drilling for oil and natural gas in the maritime territory that both countries consider theirs.

In the South China Sea, China is making an increasingly strong claim to the 9-dash line. This is the maritime space that China claims in the name of historical right. A massive claim, as this corresponds to more than ⅔ of the South China Sea. Moreover, it encroaches on the economic zones of Vietnam, Malaysia and the Philippines.

Second, in recent decades, energy activities in the South China Sea have been subject to a slowdown. The Chinese coast guard or maritime surveillance vessels have disrupted the work of Vietnam, Malaysia and the Philippines in their exclusive economic zones.

In addition, diplomatic relations between Jakarta and Beijing have soured over the claim. China claims the right for its vessels to fish in the Northern Natuna Sea. These waters, located north of the small archipelago of Natuna, yet assigned in 2016 to Indonesia, as an exclusive economic zone (EEZ), by an international court.

Indeed, the Philippines decided to refer the matter to the Court of Arbitration in The Hague. The Court rendered a judgment in 2016 not favorable to China. It also states after studies that China’s historical rights were unfounded. Nevertheless, China turns its back on multilateral institutions when it explicitly rejects the decision.

Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
Enbridge Gas Ohio is assessing its legal options following the Ohio regulator's decision to cut its revenues, citing potential threats to investment and future customer costs.
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.