Two deepwater gas hubs on the Asian energy horizon as Eni unveils FIDs

March 19, 2026, by Melisa Cavcic

Italy’s energy giant Eni has taken final investment decisions (FIDs) for two gas projects off the coast of Indonesia, Southeast Asia. The company expects these projects to strengthen not only domestic supply but also LNG exports, while leveraging existing infrastructure to accelerate time to market.

Eni’s FIDs for the Gendalo and Gandang gas project for the South Hub and the Geng North and Gehem fields for the North Hub come only 18 months after the approval of the projects of development (PODs) in 2024. The Italian player is convinced that this confirms the fast pace of development of its deepwater gas projects offshore East Kalimantan.

These developments combine technologies with the leveraging of existing infrastructure, including the Jangkrik floating production unit (FPU) and the Bontang liquefaction plant, enabling significant cost efficiencies and accelerating time to market. With the sanctioning of the Gendalo, Gandang, Geng North, and Gehem fields, the firm is set to deliver up to 2 bscfd of gas and 90,000 bpd of condensate at plateau.

The FIDs for the North Hub and South Hub projects are perceived to demonstrate the company’s strong ability to maximize value by combining exploration performance with a distinctive fast‑track development model, which is interpreted to reflect the cooperation among Eni, co-venturers, and the government of Indonesia.

The development plan for Gendalo and Gandang in water depths ranging from 1,000 to 1,800 meters entails the drilling of seven producing wells and the installation of deepwater subsea production systems tied back to the Jangkrik FPU.

Eni sets its cap on ‘game changer’ move in Asia as its new gas and condensates offshore production hub gets the go-ahead

Exploration & Production

On the other hand, the North Hub foresees the drilling of 16 producing wells at water depths between 1,700 and 2,000 meters, and the installation of subsea systems linked to a newly built FPSO capable of processing over 1 bscfd of gas and 90,000 bpd of condensate, with a storage capacity of 1.4 million barrels.

Eni outlined: “The combined volumes in place for the two projects amount to nearly 10 Tcf of gas initially in place (GIIP), with 550 million barrels of associated condensate. The two projects are expected to start up in 2028 and Eni will reach a production plateau of 2 bscfd of gas and 90,000 bpd of condensate in 2029.

“The gas will be transported onshore via an export pipeline to a receiving facility feeding both the existing domestic pipeline network and the Bontang LNG plant. The LNG produced will supply domestic demand as well as international markets. Condensate will be processed and stored offshore in the FPSO for export via shuttle tanker.”

According to the Italian energy heavyweight, the development plan encompasses the extension of the operating life of the Bontang LNG plant by reactivating one of its currently idle liquefaction trains, Train F.

The company continued: “These projects reaffirm Eni’s long‑term commitment to Indonesia’s growing offshore gas sector, enhancing gas supply while maximizing synergies with existing infrastructure in East Kalimantan and the involvement of significant local content.

“In particular, the development of Geng North and Gehem will establish a new production hub in the northern Kutei Basin, creating additional tie‑back opportunities for future discoveries.”

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These projects will form part of the assets the firm intends to contribute to the ongoing business combination with Petronas, aimed at creating a new company that is expected to produce more than 500 kboepd by 2029.

Eni is also working on energy projects elsewhere, as illustrated by its recent gas discoveries off the coast of Libya.