Construction has commenced on the Makassar Strait North Hub, a major offshore natural gas development in East Kalimantan, Indonesia, designed to unlock gas reserves from two ultra-deepwater fields in the Kutai Basin. The project, with a total investment of approximately USD15 billion, will integrate production from the two offshore fields through a central processing hub to strengthen Indonesia’s domestic energy supply and support long-term industrial and economic growth.
The development includes the construction of Bahtera Haluan Lestari, Indonesia’s first ultra-deepwater floating production, storage and offloading (FPSO) facility. The approximately 300-metre-long vessel, representing an investment of around USD3 billion, is designed to operate in water depths of up to 2,000 metres. It will have the capacity to process up to 1 billion standard cubic feet of natural gas per day, produce approximately 80,000 barrels of condensate per day, and provide storage for around 1.4 million barrels. The remaining USD12 billion will be invested in associated field development and supporting offshore infrastructure.
The Makassar Strait North Hub is expected to expand Indonesia’s offshore production capacity and improve energy security by bringing new gas resources into commercial operation. Construction and development activities are progressing towards the project’s production phase, with first gas targeted for the fourth quarter of 2028.