NuEnergy is progressing towards commercial operations for its flagship Tanjung Enim coalbed methane (CBM) development in South Sumatra, Indonesia, with initial gas sales targeted for the first half of 2026. The project aims for an initial sales volume of 1 million cubic feet per day upon start-up.

Project Development and Recent Milestone

The company has completed the drilling of the fourth and final planned CBM well, TE-B01-003, under its Plan of Development 1. The well reached a depth of 451 metres and intersected five coal seams between 299 and 419 metres. Gas shows were observed at the surface, confirming the presence of methane across multiple coal seams. Preparations are now underway to begin the dewatering phase of the project.

Gas Sales and Infrastructure

The produced gas will be delivered via an infield pipeline to the processing and distribution facility of Indonesia's state-owned gas company, Perusahaan Gas Negara (PGN), under a previously signed heads of agreement. This transaction received government approval in September, securing the commercial pathway for the gas.

Ownership and Reserves

The Tanjung Enim Production Sharing Contract (PSC) is operated by NuEnergy, which holds a 45% interest. The Indonesian government holds a 5% stake, while the remaining 55% is equally owned by national energy company Pertamina and Bukit Asam. Gross recoverable reserves for the Tanjung Enim POD 1 are estimated at 165 billion cubic feet of gas.

Long-Term Production Strategy

NuEnergy plans to drill 209 wells to achieve a plateau gas production of up to 25 million cubic feet per day over a 10-year period. The Tanjung Enim development is intended to serve as a central production facility for the company's integrated CBM development, which includes its other South Sumatra CBM PSCs. The project's commercial potential is bolstered by its proximity to major gas trunk lines serving the Java gas market, as well as potential export opportunities to Malaysia and Singapore.

Other CBM Assets and Future Plans

NuEnergy holds two other CBM assets in South Sumatra. The Muara Enim asset is in the pre-POD stage, and the Muralim asset is in the appraisal stage. The company is currently applying for extensions to complete its Plan of Development proposals for both fields, subject to approval from Indonesia’s Ministry of Energy & Mineral Resources. Additionally, NuEnergy is in the process of reactivating the PSC for the Muara Enim II development, which is co-located with the Tanjung Enim PSC.