Revealed! PGN and PLN Purchase IDD Gas at 12.4% of the ICP
GAS INDUSTRY NEWS
Rio Indrawan (Dunia Energi)
2/26/2026
One of the gas projects eagerly awaited for completion, the Indonesia Deepwater Development (IDD) deepwater oil and gas project, is about to enter the Final Investment Decision (FID) phase. One of the most anticipated FID decisions concerns the gas price.
Djoko Siswanto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), revealed that the IDD project's FID is final and now awaits approval from the Minister of Energy and Mineral Resources (ESDM).
A prerequisite for a gas project to enter the FID phase before construction begins is the availability of gas buyers. The two main customers for the IDD project will be PGN and PLN.
"It's just a matter of signing, Mr. Minister. The negotiations are complete. The final price of 12.4% of the ICP is now final," said Djoko during a meeting with Purbaya Yudhi Sadewa, Minister of Finance and head of the Task Force for the Acceleration of Government Strategic Programs (Satgas P2SP), Tuesday (February 24).
PGN and PLN have agreed on the IDD gas price. So, if the ICP price in January 2026 was US$64.4 per barrel, then the gas price would be around US$7.9 per MMBTU.
The IDD project itself is a deepwater gas field development project expected to significantly contribute to national gas production, while simultaneously strengthening supply for domestic needs and exports.
With a project value of approximately US$15 billion, it is one of the largest oil and gas developments in recent years.
With an investment value of approximately US$15 billion, this project is projected to create broad multiplier effects, ranging from job creation, increased capacity of domestic supporting industries, and state revenue from the oil and gas sector.
The IDD South Hub will be integrated with the Jangkrik floating production unit (FPU) facility, also owned by ENI. ENI is partnering with Petronas in the IDD project, which was inaugurated in November 2025.
One of the gas projects eagerly awaited for completion, the Indonesia Deepwater Development (IDD) deepwater oil and gas project, is about to enter the Final Investment Decision (FID) phase. One of the most anticipated FID decisions concerns the gas price.
Djoko Siswanto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), revealed that the IDD project's FID is final and now awaits approval from the Minister of Energy and Mineral Resources (ESDM).
A prerequisite for a gas project to enter the FID phase before construction begins is the availability of gas buyers. The two main customers for the IDD project will be PGN and PLN.
"It's just a matter of signing, Mr. Minister. The negotiations are complete. The final price of 12.4% of the ICP is now final," said Djoko during a meeting with Purbaya Yudhi Sadewa, Minister of Finance and head of the Task Force for the Acceleration of Government Strategic Programs (Satgas P2SP), Tuesday (February 24).
PGN and PLN have agreed on the IDD gas price. So, if the ICP price in January 2026 was US$64.4 per barrel, then the gas price would be around US$7.9 per MMBTU.
The IDD project itself is a deepwater gas field development project expected to significantly contribute to national gas production, while simultaneously strengthening supply for domestic needs and exports.
With a project value of approximately US$15 billion, it is one of the largest oil and gas developments in recent years.
With an investment value of approximately US$15 billion, this project is projected to create broad multiplier effects, ranging from job creation, increased capacity of domestic supporting industries, and state revenue from the oil and gas sector.
The IDD South Hub will be integrated with the Jangkrik floating production unit (FPU) facility, also owned by ENI. ENI is partnering with Petronas in the IDD project, which was inaugurated in November 2025.
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