U.S. LNG Export Update: 3BCF/Day Rise in Exports Expected through 2027, 10th Export Terminal Comes Online, and Import Prices Very High in Europe and Asia Due to Iran War

     U.S. LNG exports are set to rise by about 2BCF/day through 2027. Current export capacity is 18.3 BCF/day, with actual exports at about 17 BCF/day. That is nearly a 93% utilization rate. Utilization rates picked up and are expected to remain high to offset losses, especially from Qatar, due to the Iran war. The graph below shows total exports and imports from the U.S. via pipeline and LNG. Note that the U.S. imports about 0.1 BCF/day of LNG to New England for winter inventory and is expected to continue that rate or less through 2027. These imports only exist because much, much cheaper gas that could be pipelined from Northeastern PA is not available due to opposition to pipelines, mainly from the state of New York. Pipeline gas exports to Mexico continue to increase incrementally, but the biggest rise in exports is mainly LNG exports. Some of the U.S. natural gas pipelined to Mexico is expected to be liquefied and exported from Mexico as LNG. Two terminals are expected to come online, one in 2026 and one in 2027, with a combined export capacity of 0.6 BCF/day. The U.S. also imports about 8.7 BCF/day from Canada via pipeline. This is expected to drop to 8BCF/day as Canada diverts some production to feed 2.1 BCF/day of new LNG exports from its West Coast. The Appalachian region is expected to replace some of that gas as its production is expected to grow by about 1 BCF/day or more through 2027.

     Qatari LNG exports represent:

“….10 Bcf/d, or 20% of global supply. Qatar also sustained damage to 17% of its export capacity after a March 18 attack on the Ras Laffan LNG export facility damaged two liquefaction trains. QatarEnergy estimates repairs on the damaged trains could take up to five years.”

     Since the advent of the Russian invasion of Ukraine in February 2022, more U.S. LNG exports have been diverted from Asia to Europe, as the following graph shows. In 2025, exports to Europe reached a record high of 10.3 BCF/day.

     EIA also recently reported:

“On April 22, 2026, Golden Pass LNG—the 9th liquefied natural gas (LNG) terminal in the United States—shipped its first cargo from Train 1, according to the project developer. The shipment left port 23 days after achieving first LNG production in March 2026. The terminal began shipping as geopolitical developments in the Strait of Hormuz have affected over 10 billion cubic feet per day (Bcf/d), or approximately 20%, of global supply. Golden Pass LNG is the only new U.S. LNG export terminal currently expected to begin LNG shipments in 2026.”

     LNG import prices have been very high in Asia and Europe due to the Iran War. The following graph shows that before the war, LNG import prices in both Europe and Japan were a little over three times the average Henry Hub price. Those prices peaked in late March at about seven times Henry Hub prices and are now back at about five times Henry Hub prices.

   

References:

 

The 10th U.S. liquefied natural gas export terminal, Golden Pass, ships first cargo. Energy Information Administration. April 23, 2026. The 10th U.S. liquefied natural gas export terminal, Golden Pass, ships first cargo - U.S. Energy Information Administration (EIA)

U.S. natural gas exports to grow nearly 30% by 2027 as LNG facilities ramp up. Energy Information Administration. April 16, 2026. U.S. natural gas exports to grow nearly 30% by 2027 as LNG facilities ramp up - U.S. Energy Information Administration (EIA)

Weekly Natural Gas Storage Report Supplement: For week ending April 22, 2026: Release Date: April 23, 2026. Energy Information Administration. Natural Gas - U.S. Energy Information Administration (EIA)

 

Marcellus Shale Coalition Promotes Fact-Based Clarity Ahead of and During Pennsylvania Methane Hearings

      The Marcellus Shale Coalition notes that Pennsylvania’s methane hearings (that happened this week) will likely generate headlines but likely not generate clarity, which its recent blog post, Separating Methane Facts from Fiction, seeks to provide. The coalition is an oil & gas industry advocacy group local to the Marcellus region of mainly Pennsylvania and smaller pieces of West Virginia and Ohio. The group notes that they are committed to educating policymakers, especially as less educated oppositional rhetoric is often thrown at the industry.

     The post starts with basic facts: 1) agriculture is responsible for one-third of human-caused methane emissions, twice as much as natural gas system emissions, which make up 17%. 2) Total U.S. human-caused methane emissions are down 19% since 1991, during a period when natural gas production doubled. 3) Natural sources such as wetlands are responsible for one-third of total methane emissions. They don’t mention biogenic waste emissions from landfills, which also contribute more than natural gas systems to human-caused methane emissions.

     They link to a report by the Appalachian Methane Initiative, which states that the Appalachian Basin consistently has the lowest methane emissions intensity among U.S. oil & gas basins. The initiative involves “independent monitoring providers, technical consultants, and top-tier universities.” The most recent study utilized “nearly 17,000 unique surveyed sites measurements across approximately 31,800 square miles (82,360 square kilometers) of the Appalachian Basin.” The key findings of that report, shown below, are interesting. Two things that stand out for me are that 1) conventional wells make up 2% of gas production, but two-thirds of methane emissions in the basin, and 2) 80% of large satellite-detected methane plumes are from coal mining operations.

     They note that the state of Pennsylvania has a comprehensive methane regulatory framework that requires:

 “…leak detection and repair (LDAR), routine inspections, and detailed monitoring across well sites and compressor stations. Operators must conduct regular inspections and submit emissions and operational data, ensuring transparency through publicly accessible compliance records and state oversight.”

     Next, they address the “dramatic claims” that often occur in the media about methane emissions. They consider the use of the term “super-emitter,” which refers to a single point with a high leaking rate. Of course, super-emitters may be completely repaired after they are identified. They note that some high leak rates are associated with maintenance or ensuring safety, and may be:

“…based on momentary snapshots – capturing short-duration, controlled events like maintenance or safety procedures.”

     Snapshots do not capture the whole story, and if those snapshots are associated with maintenance events, they are very temporary, not continuous leaks.

“Emission estimates depend heavily on weather conditions, site characteristics, and verification from additional data sources. Without that, conclusions can be off the mark.”

“Responsible analysis draws from multiple inputs – ground monitoring, aerial surveys, and operational data – not a single point in time.”

     They stress that the real story is based on data, not rhetoric.

     The Pennsylvania methane hearings included presentations from the PADEP, the Sierra Club, Environmental Defense Fund (which has its own methane-detecting satellites), Earthworks, Clean Air Council, the Pennsylvania Independent Oil and Gas Association, and the Marcellus Shale Coalition.

     Two graphs of methane emissions and methane emissions intensity, by oil & gas basin, from the Marcellus Shale Coalition, are shown below, followed by a graphic of unconventional (shale/"fracked horizontal wells") oil & gas emissions versus emissions from cows.

     Below is a graphic of methane plumes by

 company, compiled by Earthworks.  

 

References:

 

Separating Methane Facts from Fiction. Marcellus Shale Coalition Blog. April 15, 2026. Separating Methane Facts from Fiction – Marcellus Shale Coalition

Appalachian Basin Once Again Confirmed as Lowest Methane Intensity Major Oil and Gas Basin in the United States. The Appalachian Methane Initiative. March 20, 2026. Appalachian Basin Once Again Confirmed as Lowest Methane Intensity Major Oil and Gas Basin in the United States

House Environmental Resources & Natural Protection Committee Public Hearing. Commonwealth of Pennsylvania. April 21, 2026. Testimony on Methane Emission from Oil and Gas.docx

Konica Minolta’s Quantitative Optical Gas Imaging Camera GMP03: With an Introduction to Quantitative Optical Gas Imaging (QOGI): White Paper Summary & Review

     Optical imaging via specialized cameras known as optical gas imaging (OGI) cameras has become standard in exploring oil & gas facilities for detecting, and to a lesser extent, quantifying gas leaks. The GMP03 is Konica Minolta’s latest handheld Quantitative Optical Gas Imaging (QOGI) camera, which provides methane detection and field quantification. Accurate quantification is one of the biggest challenges to understanding facility-level methane leaks. The company refers to the camera as a tool that provides Reliable Quantitative Optical Gas Imaging (R‑QOGI). The company’s white paper: Design Philosophy of Reliable - Quantitative Optical Gas Imaging camera GMP03 for Achieving “Reliable Quantification” in the Field is summarized and reviewed below. First is the abstract:

ABSTRACT

This white paper presents the design philosophy for achieving reliable, decision ready quantification using the R‑QOGI camera GMP03 under real-world field conditions. While OGI cameras have become widely adopted for rapid leak detection, effective methane-mitigation efforts and regulatory reporting increasingly require identifying leaks and quantifying emission rates. Direct-contact methods, such as high-volume sampling, or bagging techniques, are often impractical in hazardous, hard-to-reach, or structurally complex facilities, reinforcing the need for a robust non-contact alternative. 

However, field-based QOGI faces inherent fundamental challenges. Outdoor airflow is rarely stable, and wind-driven plume deformation introduces significant temporal variability. As a result, measurement sequences often contain transient segments that are unsuitable for quantification, leading to unstable results and a high dependence on operator interpretation.

To address these challenges, the R-QOGI camera GMP03 reframes quantification as a time-series evaluation problem. It analyzes plume dynamics and environmental stability over time, automatically selects only data segments suitable for quantification, and generates a single representative emission value.  In addition, the R-QOGI camera GMP03 provides an intuitive reliability indicator derived from cumulative imagery and environmental metrics, enabling users to assess the reliability of each result on site while reducing reliance on operator judgment. 

Finally, this paper outlines how QOGI cameras are evolving beyond fugitive emissions to address higher-rate events—such as vents, blowdowns, and episodic releases—that are required to be quantified under recent regulatory and reporting frameworks. These advancements include large-scale calibration, enhanced background reconstruction.

     OGI cameras utilize infrared imagery to detect methane leaks. QOGI pixilates that imagery in order to better quantify leaks. It generates “stable, high contrast, high dynamic range gas flow imagery through proprietary image processing technologies.”

     Wind can have a profound effect on OGI measurements. A key feature of the QOGI camera is its ability to work through wind-driven variability, as shown below.

    “{The camera}… introduces an automated capability to evaluate temporal fluctuations in plume shape, motion, and environmental conditions, extracting only the segments deemed suitable for quantification and generating a single representative value.”

     Several environmental variables affect the ability of OGI cameras, including the QOGI camera, to accurately measure emissions rates by influencing gas detection sensitivity.

“Flow rate estimation using QOGI cameras is strongly influenced by gas detection sensitivity at the time of imaging and by surrounding environmental noise. When sensitivity is degraded or when noise levels are high, the algorithm cannot acquire sufficient information, making it inherently difficult to estimate highly accurate flow rate values.”

     Altitude, time of day, relative position of the sun, and clouds can all affect measurements. With its previous model, the company introduced a sensitivity map function to help filter out and work around environmental noise. Since these noise sources, like clouds and wind, change over time, one can take measurements at different times to validate results.

“Rather than focusing on “always producing correct numerical values,” GMP03 places emphasis on “enabling users to judge whether a result should be adopted.”

     Understanding the effects of environmental noise in differing conditions allows for better estimation of leak rates.

     They note that the incorporation of representative values and reliability indicators gives the product a higher accuracy.

     Below, they give some examples where underestimation and overestimation of leak rates are likely.

 “In addition to the influence of wind, estimation errors may occur under these imaging conditions:

- When the temperature of the observed object is close to the gas temperature, detection sensitivity decreases and the flow rate tends to be underestimated.

- In environments with significant noise, noise may be misidentified as gas, leading to overestimation of the flow rate.”

     In the R-QOGI approach, the reliability indicators are based on factors such as imaging sensitivity, noise level, and wind conditions. Ideal imaging conditions lead to better quantification. Thus, it could become a strategy to plan OGI measurements with the predicted weather. Weather prediction has gotten very good and detailed, so that planning accordingly can yield the best results. Adjusting the shooting angles based on prevailing wind direction can improve imaging quantification results. Reliability factors can also determine whether re-shooting an area is warranted.

“…the R‑QOGI camera GMP03 is designed with the understanding that plume behavior and imaging conditions vary over time, and it places strong emphasis on enabling users to assess the validity of the results.”

     They stress that giving the reliability indicators with each reading is essential in getting accurate estimations.

     The graph below shows that the company’s statistical method of representative values offers somewhat better accuracy than simple averaging of values. The percentages indicate “the proportion of estimates falling within a factor‑of‑two range (50%–200%) relative to the true flow rate.”

     The white paper’s section on future technical directions notes that QOGI tech has, in the past, mainly focused on small, fugitive, unintentional leaks of less than a few kilograms per hour. Those are still important, but there is now more focus on vents, blowdowns, and large episodic events. One reason for more focus on these is that, as the smaller leaks are repaired, the larger leaks associated with maintenance events like blowdowns take up a greater share of the overall leaks. This means that there is now more emphasis on measuring and quantifying leak rates during these events. For the scientist, this is an opportunity to acquire more data, improve understanding, and potentially to get better overall quantification. However, as they note, larger gas plumes behave differently from small ones.

“Field evaluations at METEC and Stanford have demonstrated that traditional concentration‑pathlength (ppm-m) estimation methods—optimized for small leaks—can significantly under‑estimate emissions in the 20–1000 kg/hr range, particularly in situations where gas retention prevents accurate background determination.”

     The company has implemented the following enhancements to better quantify larger leaks and has plans to release future products to better measure such releases:

“With planned product releases for vent and blowdown quantification in 2026 and super-emitter quantification in 2027, QOGI systems are evolving into comprehensive emission measurement platforms capable of supporting regulatory reporting, carbon accounting, and operational decision making. As global methane reduction initiatives accelerate, these innovations will play a vital role in enabling operators to understand their full emission profiles and to take informed, data-driven action.”

     To summarize, the R-QOGI camera GMP03 has enabled judgment to be shifted from human operators to an algorithmic framework specifically designed for field conditions. This allows it to better account for plume behavior and environmental factors. Essentially, it has the ability to filter out what should be considered bad data due to poor conditions. They seem to suggest that prior measurements have relied too much on human judgement, and replacing that with algorithms coordinated with field conditions can give more consistent results.   

     Finally, they note that GMP03 is not simply a tool, but a platform as well:

“Advances in large-scale correction, background reconstruction, and total mass estimation further extend the applicability of OGI based quantification to high-rate and long-range scenarios. Together, these developments position QOGI as a comprehensive emissions measurement platform rather than a niche inspection tool.”

  

 

References:

 

Design Philosophy of Reliable - Quantitative Optical Gas Imaging camera GMP03 for Achieving Reliable Quantification in the Field. Konica Minolta. KonicaMinolta_design-philosophy-of-reliable-quantative-optical-gas-imaging-camera.pdf

 

Dark Vision’s Kraken In-Line Inspection Pipeline Pigging Tool Acoustically Images Seam Welds, Complex Cracks, and Dents: Cuts Pigging Downtime Per Section, Enables More Monitoring, and Provides High-Detail 3D Photorealistic Visuals

   

     This post was initiated by a LinkedIn post giving a strong endorsement from a colleague who is an accomplished petroleum engineer:

“While I try to maintain professional decorum in my LinkedIn posts save for the occasional light-hearted photo or comment, let me be much more blunt.”

“DarkVision's Kraken ILI tool is a complete game changer. More data, more resolution, the ability to look at crack, corrosion, and deformation all in one run. This is an absolute tectonic shift in technology.”

     That post made me want to look further into this technology. It is good to know what new technologies are impacting industries and how they work.

     The company, Dark Vision, provides acoustic imaging for industrial processes. This imaging utilizes thousands of signal arrays, and data processing is done via cloud computing and machine learning. The company keeps the world’s largest industrial acoustical datasets; the datasets collected for each project are converted via software with AI/machine learning into photorealistic high-fidelity visuals. 

     In the case of pipelines, it allows for better imaging of vulnerable points in pipelines and the small cracks that can later become bigger cracks. Better imaging = better monitoring. It also works in high-pressure/high-temperature environments.

    Dark Vision’s in-line inspection (ILI) tool called Kraken can evaluate all major pipeline damage types, including metal loss, axial cracks, and dents. Importantly, it can do this with a single tool in a single run. The detailed 3D images of pipeline anomalies can assist evaluators in finding the root causes of anomalies. For unraveling crack morphologies, Kraken can exceed legacy amplitude-based inferred measurement methods. It provides ultra-fast acoustical imaging at very high resolutions. Kraken’s results were validated against industry-standard tools, including a metrology-grade laser scanner and a phased-array ultrasound handheld tool. It also performed well in challenging anomalies such as stress corrosion cracking (SCC), hook cracks, and lack of fusion. The product was first introduced and featured in 2025’s 37th International Pipeline Pigging and Integrity Management Conference. The abstract is below.

     At 2026’s 38th International Pipeline Pigging and Integrity Management Conference Proceedings, Dark Vision submitted a paper detailing Kraken’s capabilities, including its ability to measure “misaligned and over/under trimmed weld profiles, short lack-of-fusion (LoF) penetrators, and hook cracks in welds,”  as well as “stress corrosion cracking (SCC) and complex laminations with surface breaking features.” The paper’s abstract is below.

   A tool such as this can reduce the downtime associated with using multiple pigging tools, multiple tool runs, and allow for more pigging over a company’s assets. This means it can support better pipeline integrity monitoring.   

 

References:

 

Beyond the Surface: Dig Results from Direct Imaging ILI of Seam Welds and Complex Crack Defects in Pipelines. Greer Simpson, Corey Richards, Marshall Lu, Aaron Schwing, Jason Moritz. 38th International Pipeline Pigging and Integrity Management Conference (PPIM 2026). Held 19-22 January 2026, Houston, Texas, USA. Pages 625-656. (Abstract) Beyond the Surface: Dig Results from Direct Imaging ILI of Seam Welds and Complex Crack Defects in Pipelines - proceedings.com

The Future of Industrial Acoustic Imaging is Here: Discover what makes DarkVision’s technology the world leading solution in industrial asset inspection. DarkVision Technology. Our Technology | Advanced Industrial Imaging | DarkVision

PPIM 2025 Paper: Introducing Triple-threat Detection and Sizing in a Single Pass. 37th International Pipeline Pigging and Integrity Management Conference (PPIM 2025). January 28, 2025. (Abstract). PPIM 2025 Paper: Introducing Triple-threat Detection and Sizing in a Single Pass | Whitepapers | DarkVision

Chemical Leaked at West Virginia Silver Recovery Plant was Hydrogen Sulfide (H2S): 2 Killed, 30 Hospitalized, One in Critical Condition

     A dangerous chemical leak occurred at the Catalyst Refiners plant in Institute, West Virginia, this week, resulting in two deaths and 30 hospitalizations, with one in critical condition. The leak occurred when the company was in the process of preparing to shut down part of the plant, which recovers silver via chemical reactions. Silver is used as a catalyst for other chemical reactions.

     According to AP, Kanawha County Commission Emergency Management Director C.W. Sigman noted that:

“A chemical gas reaction occurred at the plant involving nitric acid and another substance, Sigman said at a news briefing. He added that there was “a violent reaction of the chemicals and it instantaneously overreacted.”

“Starting or ending a chemical reaction are the most dangerous times,” Sigman said.

“The chemical reaction that was believed to have occurred during a cleaning process produced toxic hydrogen sulfide, Kanawha County Commission President Ben Salango said.

     Seven first-responders, ambulance workers, were among those hospitalized. Patient symptoms included respiratory symptoms, including cough, shortness of breath, sore throat, and itchy eyes. A shelter-in-place order was issued for the surrounding area and lifted more than five hours later. As the chemical is diluted by the ambient air, there is no danger or concern about local air quality since the leak has presumably been contained.

“The leak required a large-scale decontamination operation in which people had to remove their clothes and be sprayed down, authorities said.”

     Investigations into the cause of the leak will likely be carried out by the state DEP, OSHA, and the National Chemical Safety Board. West Virginia Governor Patrick Morrisey noted that the Kanawha County Emergency Management team has been managing the response.

“…Sigman said earlier this afternoon that the chemical released contained Nitric Acid, but it was mixed with another chemical.”

“According to Dr. Tom Takubo, commissioners and 911 officials, the second chemical was an M2000A chemical. Takubo says that the chemical is a pulmonary irritant that gets into and coats the lungs and keeps oxygen from getting into the bloodstream, but says that he does not know the lasting impacts of exposure.”

“Sigmon says the mixture of the two chemicals happened in a pump area while they were decommissioning a tank, and that’s when the “violent reaction” of the chemicals happened, creating hydrogen sulfide. He says it “instantaneously” exposed the workers.”

     The company is owned by Ames Goldsmith Corp. Its president, Frank Barber, noted that the leak:

“…appears to have resulted in the creation of chemical fumes within a building at the facility. The fumes were contained within that one building.”

     As someone who has been trained in H2S safety as part of my oilfield training and who has also experienced low-level H2S poisoning via a gas well, I know how dangerous these exposures are, especially inside a building where concentrations can become very high very quickly. H2S safety training involves wearing Scott air packs, basically oxygenated tanks. This is likely how the situation was decontaminated by workers.

 

References:

 

Chemical leak at a West Virginia plant kills 2 people and sends 30 more to hospitals, officials say.   John Raby. April 22, 2026. Chemical leak at a West Virginia plant kills 2 people, sends 30 more to hospitals, officials say | AP News

Kanawha County, WV: Two dead, multiple injured in West Virginia chemical emergency. Jackson Lilly and Jessica Patterson. April 22, 2026. Two dead, multiple injured in West Virginia chemical emergency | WOWK

Eni’s Natural Gas and Condensate Discovery in Kutei Basin, Offshore Indonesia: Known to Be Sourced by Organic Matter Carried by Turbidite Sands, a Rare Occurrence

Sandstone Source Rocks with Coal Fragments and Abundant Leaf Matter in the Kutei Basin

     There are different kinds of sedimentary basin hydrocarbon systems. The type of kerogen generated through deep burial catagenesis depends on the source of the organic matter. Marine mudstones are the most common hydrocarbon source rocks, but there are also occurrences of terrestrial-sourced organic matter. Apparently, this is the case in the Kutei Basin, offshore Indonesia. This was determined back in 2006 and explained in an AAPG Bulletin paper led by author Arthur Saller. He noted that cores and drill cuttings show that the basin’s best source rocks are sandstones that also carried plant matter that got deposited with the turbiditic deep water sandstones. Saller noted that the sandstones have significantly higher TOC values than the shales. It was noted that the organic matter was composed of:

“…laminar coaly fragments, pieces of wood, resinite, and other coaly debris. Laminar coaly fragments are dominant, and their size, shape, and cuticle structure indicate that they were leaf fragments. Fossil leaf fragments occur in all deep-water sandstone packages from the upper slope to the basin floor. Fossil leaf fragments were apparently carried into deep water by turbidity currents during lowstands of sea level.”

     It is also noted that source rocks that contain leaf fragments often result in liquids that are waxy.

     A recent article in GeoExPro by Henk Kombrink explains why the mudstones and shales have much lower TOC values in what is considered to be a marine basin:

“Well-oxygenated conditions, resulting in rapid decomposition of the algal material, and strong bottom currents are seen as two important factors as to why the shales do not have high marine organic matter contents.”

     Kombrink notes that the organic matter carried by the Miocene-aged sandstones in turbidity currents was deposited quickly in deeper water, resulting in preservation of the organic matter. Fluvial-Deltaic systems carried the organic matter to the sea, and turbidity currents quickly carried it underwater to the slope and basin floor.

Eni’s New Giant Natural Gas and Condensate Discovery – The Geliga-1 Well

     Eni’s new discovery, the Geliga‑1 exploration well, drilled in the Ganal block in the Kutei Basin, approximately 70 km from the East Kalimantan coast, is estimated to contain in-place resources of approximately 5 trillion cubic feet (Tcf) of gas and 300 million barrels of condensate. The well was drilled to a total depth of around 5,100 meters in a water depth of about 2,000 meters. Excellent reservoir conditions were encountered, and a Drill Stem Test (DST) is planned to confirm production potential.

     The Kutei Basin has a very successful exploration history, with recent wells in 2023 and 2025 encountering significant reserves.

     According to Eni:

“The Geliga‑1 discovery also follows the recent Final Investment Decisions (FIDs) for the Gendalo and Gandang gas project (South Hub), and for the Geng North and Gehem fields (North Hub). The North Hub project will leverage a newly built FPSO with a handling capacity of 1 bscfd of gas and 90,000 bpd of condensate, as well as the existing Bontang LNG Plant.”

“Initial assessments indicate that the combined Geliga and Gula resources have the capacity to produce an additional 1 bscfd of gas and 80,000 bpd of condensate, opening the possibility—among others—of establishing, in a fast‑track mode, a third production hub in the prolific Kutei Basin by mirroring the development concept of the ongoing North Hub project. Studies are also underway to evaluate a further rejuvenation of Bontang by resuming additional liquefaction capacity beyond what is already planned for the North Hub development, thus further extending the plant’s operational life.”

     Eni holds an 82% stake in the Geliga-1 well, with China’s Sinopec holding the other 18%.

“The Ganal PSC is part of a portfolio of 19 blocks (14 in Indonesia and 5 in Malaysia) that will be contributed to Searah, a jointly controlled company between Eni and Petronas announced in November 2025. The new company will integrate assets, technical expertise and financial capabilities to support growth and strengthen its position in Southeast Asia. Searah’s business plans include the development of approximately 3 billion barrels of oil equivalent (boe) of discovered resources and the unlocking of significant exploration potential. Closing of the transaction is expected within Q2 2026. The valorization to a third party of a 10% stake in the Eni Indonesia portfolio withheld from the Searah transaction is underway and expected to be concluded in 2026. The Geliga discovery adds to the value of this sale.”

     Eni has been active in Indonesia since 2001 and has a net production of about 90,000 barrels of oil equivalent per day, mainly from the Jangkrik and Merakes fields offshore East Kalimantan.

     In his article, Kombrink considers the Kutei Basin find as an example of near-field exploration rather than frontier exploration. He compares near-field exploration wells in the Kutei Basin to the North Sea near-field wells and concludes:

“…the Kutei Basin still has a lot more running room than the North Sea.”

     In other words, these wells are bigger than most new North Sea discoveries these days. He also notes via a LinkedIn post by Dag Helland Hansen of EMGS that a strong increase in resistivity, similar to the successful Gehem field to the north, was observed in the Geliga-1 well.

 

 

References:

 

Geliga-1 – the gas discovery sourced by sandstones. Henk Kombrink. GEOExPro. April 20, 2026. Geliga-1 - the gas discovery sourced by sandstones - GeoExpro

Eni’s major Geliga Gas Discovery Confirms the Strategic Potential of Indonesia’s Kutei Basin and Unlocks Significant New Volumes for Domestic and International Markets. Eni. 20 April 2026. Eni’s major Geliga Gas Discovery Confirms the Strategic Potential of Indonesia’s Kutei Basin and Unlocks Significant New Volumes for Domestic and International Markets

Leaves in turbidite sands: The main source of oil and gas in the deep-water Kutei Basin, Indonesia. Arthur Saller; Rui Lin; John Dunham. AAPG Bulletin (2006) 90 (10): 1585–1608. Leaves in turbidite sands: The main source of oil and gas in the deep-water Kutei Basin, Indonesia | AAPG Bulletin | GeoScienceWorld

The Iceland Deep Drilling Project: Hottest Geothermal on Earth (So Far): Magma EGS Power is Born

    

     The National Energy Authority of Iceland (Orkustofnun/OS) and four of Iceland's leading energy companies: Hitaveita Suðurnesja (HS), Landsvirkjun, Orkuveita Reykjavíkur and Mannvit Engineering established the Iceland Deep Drilling Project (IDDP) in 2000 to advance geothermal energy development. The consortium is also known as “Deep Vision.”

     According to Wikipedia:

“The aim is to improve the economics of geothermal energy production. Its strategy is to look at the usefulness of supercritical hydrothermal fluids as an economic energy source. This necessitates drilling to depths of greater than 4,000 metres (13,000 ft) in order to tap the temperatures of more than 400 °C (750 °F). The drilling is at a rifted plate margin on the mid-oceanic ridge. Producing steam from a well in a reservoir hotter than 450 °C (840 °F)—at a proposed rate of around 0.67 cubic metres per second (24 cu ft/s) should be sufficient to generate around 45 MW. If this is correct, then the project could be a major step towards developing high-temperature geothermal resources.”

     The map below shows the position of Iceland along a mid-ocean ridge rift system. This is followed by a simplified geological map of Iceland showing the locations of Iceland's geothermal systems and the three areas, Krafla, Reykjanes and Hengill, of IDDP-1, IDDP-2, and the future IDDP-3:

     The first well, IDDP-1, was drilled into a magma reservoir in 2009. It was planned to be drilled to 4000 meters (about 13,000ft), but stopped when it hit magma at 2100 meters (about 6900 ft). Temperatures in the well were found to be 900 °C (1,650 °F). The well was thought to be capable of producing about 36MW of electricity if connected to the grid, but was eventually abandoned due to mechanical difficulties with equipment affected by the heat.

     The first graphic below shows the original design well schematic for IDDP-1, and the As-Built well schematic. The second graphic shows the original drilling and coring plan vs. the actual drilling and coring done for IDDP-1:

     Angela Seligman, who has been documenting IDDP in a blog series for Clean Air Task Force, gives a summary of IDDP-1 below, followed by a graphic from another source depicting the well (note that the graphic shows that a titanium-lined casing was used in the well):

     The second well, IDDP-2, was a deepened well and was drilled to 4,659 metres (15,285 ft). Drilling began in 2016 and was completed in 2017. They were hoping to reach a temperature of 500 °C (930 °F), but the final temperature ended up being 427 °C (800 °F) with a fluid pressure of 340 bars (4,900 psi).

“Core samples were taken, showing rocks at the bottom that appeared to be permeable, and fluids in supercritical conditions were successfully reached, accomplishing all of the main objectives of the drilling operation.”

     Seligman gives a summary of IDDP-2 below:

     The drilling IDDP-1 was plagued by lost circulation, which is not uncommon with geothermal wells. In this case, before reaching the target magma, the drill encountered two active hydrothermal systems where circulation was lost. The lost circulation issues were resolved with lost circulation material (LCM) and cement. The first time the well encountered the first hydrothermal system, LCM was not enough to stem the losses. Then, a decision was made to sidetrack the well, which refers to plugging the bottom of the hole with cement and coming up the hole to redrill into that section away from the original hole. The next time they encountered the hydrothermal zone, they were able to set a cement plug through it in order to slow the losses of drilling fluid.  It worked, and they were able to drill the hole deeper.

     A 2023 paper in GRC Transactions by Agustin Garbino of the University of Texas at Austin examined the details of IDDP-1 and the conclusions of the paper are given below:

“Although the first well drilled as part of the Iceland Deep Drilling Project was unsuccessful in testing supercritical fluids, it became the world’s hottest producing geothermal well with a record flowing temperature of 450°C. It proved the existence of a magma chamber at 2 km in Krafla, where temperature is estimated to be around 900°C.”

“Huenges (2017) defined enhanced geothermal systems as “geothermal reservoirs in which technologies enable economic utilization of low permeability conductive dry rocks or low productivity convective water-bearing systems by creating fluid connectivity through hydraulic, thermal, or chemical stimulation”. Because its production is believed to be a result from hydraulic and thermal cracking of a metamorphic formation heated by a magma chamber, the IDDP-1 well is considered by this definition to be the first productive Magma-EGS in the world (Friðleifsson et al., 2015, Friðleifsson et al., 2021).” 

“When considering the size of the huge magma chamber based on seismic measurement, it is believed that Krafla power plant could probably multiply its energy production by an order of magnitude from the currently installed capacity of 60 MWe (Friðleifsson et al., 2021). However, several engineering challenges need to be addressed beforehand related to casing integrity, managing of loss circulation during drilling and surface equipment design. Thermal strains acting on the casing and corrosive environments affecting wellhead and surface facilities appear to be the biggest challenges to overcome before venturing into a development of this kind.”

     A paper published in the Proceedings World Geothermal Congress in 2021 describes the implications and importance of the two wells, noting about IDDP-2:

“A major achievement of the IDDP-2 well was to demonstrate that it is possible to drill into a supercritical geothermal reservoir, while there are shallower feed points that produce subcritical fluids. Whether the mixture of the saline fluid from different depths will be capable of generating electric power remains to be seen. Nevertheless, the major success of the IDDP-2 well is the finding of primary and/or enhanced deep permeability in very hot rocks. The implication of this finding needs to be evaluated in the wider context of worldwide supercritical geothermal systems.”

     Since drilling induced hydraulic fracturing in the wells, they are considered to be enhanced geothermal wells that created an enhanced geothermal system (EGS) when water is added to the newly made reservoir. The conclusions of the paper are given below.

“The results from research on the IDDP-1 and IDDP-2 wells thus far, for the future utilization of superhot geothermal systems at supercritical conditions, have already paid off in increased knowledge and understanding. It is quite clear that deep EGS systems can be created in superhot rocks up to magmatic temperatures.  Permeable rocks are found to great depths and permeability is likely to be further enhanced by hydraulic and thermal cracking during drilling. The geothermal resource base for similar volcanic systems needs to be expanded downwards by at least 1 km. Magma EGS (MEGS) systems can be created. Supercritical saline systems are drillable and usable, if not for direct use, then definitely as deep EGS system in superhot rocks.” 

“Within the next 5 years or so the IDDP-3 well is planned to be drilled to 4-5 km depth within the Hengill geothermal system, operated by Reykjavik Energy. Estimated cost of drilling and testing can be considered similar as for IDDP-2, or about 30 m€, and to this we may add some 20 m€ for pilot tests and power plants related to all the IDDP test sites (Friðleifsson et al., 2019). In summary, total accumulated cost for the IDDP project may approach 100 m€ before its conclusion. However, developing geothermal wells that have power outputs ten times that of currently producing high-temperature wells remains an alluring prospect, made more credible by the results to date from the IDDP.”

     According to Seligman, IDDP-3 is being planned for drilling, with somewhat different goals.

“IDDP-3 is being planned in the Hengill area in southwest Iceland and is being led by Orkuveita Reykjavíkur (Reykjavík Energy), where evidence of superhot formations has been observed at about 2 km depth. The goal for IDDP-3 has been shifted slightly from the initial goal of the IDDP to focus on reaching superhot conditions. Accordingly, IDDP-3 is targeting fluid enthalpy greater than 3,000 kilojoules per kilogram (kJ/kg), rather that strictly achieving supercritical conditions.” 

     The graphic below shows some of the challenges of drilling supercritical geothermal or super-hot rock (SHR), which include extreme temperature and pressure conditions, materials challenges, and cost feasibility:

     According to the IDDP website, which does not seem to have been updated since 2022, the goal of the project is as follows:

“The main purpose of the IDDP project is to find out if it is economically feasible to extract energy and chemicals out of hydrothermal systems at supercritical conditions.”

  

References:

 

Pushing the limits of geothermal deep drilling: Exploring the potential of high-temperature hydrothermal systems in Iceland. Iceland Deep Drilling Project. Home - IDDP

Iceland Deep Drilling Project. Wikipedia. Iceland Deep Drilling Project - Wikipedia

Iceland Deep Drilling Project: a Review of the Main Challenges and Implications of Drilling the Well IDDP-1. Agustin Garbino, University of Texas at Austin. GRC Transactions, Vol. 47, 2023. 1034801.pdf

The IDDP success story – Highlights. Guðmundur Ómar Friðleifsson, Bjarni Pálsson, Björn Stefánsson, Albert Albertsson, Þór Gíslason, Einar Gunnlaugsson, Hildigunnur H. Thorsteinsson, Jónas Ketilsson, Sturla Sæther, Carsten Sörlie, Wilfred A. Elders, and Robert A. Zierenberg. Proceedings World Geothermal Congress 2020+1 Reykjavik, Iceland, April - October 2021. The IDDP Success Story - Highlights

An introduction to the next clean energy frontier: Superhot rock geothermal and successes from the Iceland Deep Drilling Project. Angela Seligman. Clean Air Task Force. September 17, 2025. An introduction to the next clean energy frontier: Superhot rock geothermal and successes from the Iceland Deep Drilling Project  – Clean Air Task Force