The Government of Indonesia has commenced construction of the Makassar Strait North Hub, a major offshore gas development in the waters off East Kalimantan that will combine production from two ultra-deepwater gas fields in the Kutai Basin. The project represents a total investment of approximately USD15 billion, including around USD3 billion for the construction of a floating production, storage and offloading (FPSO) facility and USD12 billion for associated field development. The project is intended to unlock significant natural gas reserves and strengthen Indonesia’s long-term energy production capacity.
The project’s centrepiece will be the Bahtera Haluan Lestari FPSO, Indonesia’s first ultra-deepwater production facility. The 300-metre-long vessel is designed to operate in water depths of up to 2,000 metres and will have the capacity to process 1 billion standard cubic feet of natural gas per day and 80,000 barrels of condensate per day. The FPSO will also provide storage capacity of approximately 1.4 million barrels, supporting continuous offshore production in deepwater conditions.
The Makassar Strait North Hub is expected to play a key role in expanding Indonesia’s domestic energy supply while supporting industrial development and regional economic growth. Construction and development activities are progressing towards the production phase, with first gas targeted for the fourth quarter of 2028.