NuEnergy Secures Key Indonesian Approval for Early Coal Bed Methane Sales
NuEnergy Gas Limited has obtained government approval to sell 1 MMSCFD of coal bed methane gas in Indonesia, marking a pivotal step in its transition to production and supporting the country’s energy security goals.
- Indonesian Ministry approves 1 MMSCFD gas allocation for NuEnergy’s subsidiary
- Early Gas Sales Initiative advances with drilling and dewatering underway
- Gas sale agreement to be finalized with state-owned distributor PGN
- Project aligns with Indonesia’s net zero emissions target by 2060
- NuEnergy focuses on developing unconventional gas assets in South Sumatra
Government Approval Unlocks Early Gas Sales
NuEnergy Gas Limited (ASX – NGY) has reached a significant milestone with the Indonesian Ministry of Energy and Mineral Resources granting approval for the sale of 1 million standard cubic feet per day (MMSCFD) of coal bed methane (CBM) gas. This approval applies to its wholly owned subsidiary, Dart Energy (Tanjung Enim) Pte Ltd, operating under the Tanjung Enim Production Sharing Contract in South Sumatra.
This authorization enables NuEnergy to move forward with its Early Gas Sales Initiative, a crucial first phase in a broader plan targeting 25 MMSCFD production capacity. The company is now positioned to finalize a gas sale and purchase agreement with PT Perusahaan Gas Negara Tbk (PGN), Indonesia’s state-owned gas distributor, marking a tangible step toward commercialising its unconventional gas resources.
Progress on the Ground – Drilling and Production
Strategic Alignment with Indonesia’s Energy Transition
This milestone dovetails with Indonesia’s national strategy to enhance domestic gas utilization and bolster energy security. The government views natural gas, including unconventional sources like CBM, as a vital transition fuel on the path to achieving net zero emissions by 2060. NuEnergy’s efforts thus not only promise commercial returns but also contribute to a climate-positive energy future for one of Asia’s fastest-growing economies.
Looking Ahead – Building a Clean Energy Hub
NuEnergy’s broader vision involves integrating its three onshore CBM production sharing contracts across South Sumatra into a cohesive gas hub. This strategy aims to supply sustainable clean energy to local markets and support Indonesia’s growing energy demands. With the early gas sales approval secured, the company is well-placed to advance its development plans, commercialize reserves, and deliver on its promise of reliable, clean energy supply.
Bottom Line?
NuEnergy’s government-backed early gas sales pave the way for scaling production and deepening Indonesia’s clean energy transition.
Questions in the middle?
- What are the financial terms and pricing details of the upcoming gas sale agreement with PGN?
- How quickly can NuEnergy ramp up from 1 MMSCFD to the full 25 MMSCFD production target?
- What are the potential risks or regulatory hurdles that could impact the broader Tanjung Enim development?