NuEnergy Ignites First Gas Sales in Indonesia’s Tanjung Enim Project
NuEnergy Gas Limited has completed drilling three wells and commenced initial gas sales at its Tanjung Enim PSC in Indonesia, marking a key step toward full-scale production. Regulatory approvals and commercial agreements are advancing, positioning the company for growth in the unconventional gas sector.
- Three wells drilled and dewatering initiated at Tanjung Enim PSC
- Initial gas sales of 1 million standard cubic feet per day approved by Indonesian Ministry
- Gas Sales and Purchase Agreement with PT Perusahaan Gas Negara pending formal signing
- Dewatering and gas flaring ongoing at Muralim PSC with extension request submitted
- Preliminary Plan of Development submitted for Muara Enim PSC; contract extension underway for Muara Enim II PSC
Operational Milestone at Tanjung Enim
NuEnergy Gas Limited (ASX – NGY) has taken a significant stride forward in its Indonesian unconventional gas ventures by completing the drilling of three wells under its Early Gas Sales Initiative at the Tanjung Enim Production Sharing Contract (PSC) in South Sumatra. The wells, TE-B06-001, TE-B06-002, and TE-B06-003, have entered the dewatering phase, a critical step for coal bed methane (CBM) extraction, with gas flaring commenced to assess flow rates and well performance.
This initial phase targets sales of 1 million standard cubic feet per day (MMSCFD), a modest but important precursor to the broader 25 MMSCFD production plan outlined in the approved Plan of Development 1 (POD 1). The Indonesian Ministry of Energy and Mineral Resources (MEMR) has granted approval for this gas allocation, enabling NuEnergy to proceed with formalizing its Gas Sales and Purchase Agreement (GSPA) with PT Perusahaan Gas Negara (PGN), Indonesia’s leading natural gas distributor.
Progress Across Multiple PSCs
Beyond Tanjung Enim, NuEnergy continues to advance its other South Sumatra assets. At the Muralim PSC, the company is collecting production data through ongoing dewatering and gas flaring tests, with flow rates from the MU-005TW well ranging between 0.7 and 1.2 cubic meters per hour. A gas discovery report has been submitted to SKK Migas, Indonesia’s upstream oil and gas regulator, and a 12-month extension request for the Plan of Development is pending approval.
Meanwhile, at the Muara Enim PSC, NuEnergy has submitted a Preliminary Plan of Development for regulatory review and similarly sought an extension to finalize its comprehensive development proposal. The Muara Enim II PSC is also in the process of contract extension negotiations with government authorities, signaling ongoing regulatory engagement across the portfolio.
Strategic Focus on Indonesian Gas Market
NuEnergy’s strategy is clear – to transition its unconventional gas assets from exploration to production and commercialization, establishing a CBM hub in South Sumatra. The company aims to supply sustainable clean energy to Indonesia’s rapidly growing market, leveraging its 100% and majority interests in key PSCs operated through its subsidiaries.
With initial production underway and regulatory approvals advancing, NuEnergy is positioning itself as a pioneer in Indonesia’s clean energy sector. The company’s focus on delivering reliable gas supply aligns with Indonesia’s broader energy transition goals, potentially unlocking significant value for shareholders as production scales up.
Bottom Line?
NuEnergy’s initial gas sales and regulatory progress set the stage for a pivotal growth phase in Indonesia’s unconventional gas market.
Questions in the middle?
- When will the formal Gas Sales and Purchase Agreement with PGN be signed and take effect?
- How quickly can NuEnergy scale production from the initial 1 MMSCFD to the full 25 MMSCFD target?
- What are the timelines and likelihood of approval for the Plan of Development extensions at Muralim and Muara Enim PSCs?
