Conrad has formally approved the Final Investment Decision (FID) for the Mako Gas Project, a $2.3 billion offshore natural gas development in Indonesia’s waters. The project is expected to deliver up to 1.2 million tons of LNG annually, boosting regional supply and supporting energy security in Asia.
- Mako Gas Project FID approved with $2.3 billion investment
- 1.5 trillion cubic feet of recoverable gas reserves identified
- Capable of producing 1.2 million tons of LNG annually
- First production targeted for 2029
- Supports Indonesia’s 2030 LNG export ambitions
- Expected to strengthen regional LNG supply and energy security
Conrad has officially greenlit the Mako Gas Project with a Final Investment Decision (FID), marking a pivotal step in expanding upstream gas capacity in Southeast Asia. Located approximately 150 kilometers off the coast of East Kalimantan, the project will develop a deepwater gas field with an estimated 1.5 trillion cubic feet of recoverable reserves. The development includes a floating production, storage, and offloading (FPSO) unit and associated subsea infrastructure, with first production scheduled for 2029. The project’s $2.3 billion capital outlay positions it as one of the largest energy investments in Indonesia's offshore sector in the past decade. Conrad’s decision reflects rising confidence in long-term gas demand, particularly in Asian markets where LNG imports have grown by over 8% annually since 2020. The Mako project is expected to supply 1.2 million tons of LNG per year, with initial contracts already secured by Japanese and South Korean utilities. The approval is likely to have broad market implications. Energy equities such as ExxonMobil (XOM), Chevron (CVX), and TotalEnergies (TTE) may see renewed investor interest, given their presence in regional LNG supply chains. Crude oil futures (CL=F) could also experience upward pressure as infrastructure development in the region strengthens overall energy sector activity. Additionally, the project supports Indonesia’s goal to increase gas-based power generation and reduce reliance on coal. Local stakeholders, including state-owned energy firm Pertamina, are expected to play a key role in project execution and downstream gas distribution. The initiative also aligns with Indonesia’s broader strategy to become a regional LNG exporter by 2030, with the Mako project serving as a cornerstone of that ambition.