Business · Energy & Commodities · 3 hrs ago
NuEnergy targets first Tanjung Enim gas sales for early 2027
NuEnergy is building facilities for its Tanjung Enim gas project in South Sumatra, Indonesia.
The project extracts coal bed methane, a type of natural gas found in coal seams, and is intended to supply Indonesia’s domestic market.
By September 30, the early production facility was 48% complete, while the adjoining gas station being built by buyer PGN was 23% complete.
The first gas sales remain targeted for the first quarter of 2027, using gas from four existing wells.
The initial phase is designed to produce 1 million standard cubic feet of gas per day, before a larger expansion adds 24 million.
A revised drilling plan calls for 13 pairs of wells instead of 209 vertical wells, which the company expects to improve efficiency and reduce the project’s environmental footprint.
A contract provides about US$88 million to fund the expansion’s development work, with costs to be recovered from future gas sales.
The Indonesian government has designated Tanjung Enim a National Strategic Project, a status expected to help coordinate its development.
NuEnergy Gas is targeting first commercial gas sales from its Tanjung Enim project in Indonesia in the first quarter of 2027.
The project’s Early Production Facility was about 48% complete at September 30, while an adjoining gas station developed by PGN was 23% complete.
The initial sales initiative is designed to produce 1 million standard cubic feet of gas per day from four existing wells.
A later development aims to add 24 million standard cubic feet per day and is backed by a field service contract worth about US$88 million.
NuEnergy’s revised drilling plan proposes 13 pairs of wells over the project’s life, replacing an earlier plan for 209 vertical wells.
- Who
- NuEnergy Gas, with gas buyer PT Perusahaan Gas Negara (PGN).
- What
- The companies are preparing facilities to process and deliver gas from the Tanjung Enim coal bed methane project. First sales are targeted for the first quarter of 2027.
- When
- First gas sales are targeted for the first quarter of 2027. The facilities were under construction during the September quarter.
- Where
- Tanjung Enim, Indonesia.
- Why
- The facilities will enable gas from four existing production wells to be supplied to Indonesia’s domestic gas market.
This story does not have two clearly opposing sides.
NuEnergy executed a Field Service Contract with PT Beijing Energy Linking to finance contracted field development works.
Construction began on the Early Production Facility and PGN’s adjoining CNG Mother Station.
The Early Production Facility was about 48% complete and PGN’s CNG Mother Station was 23% complete.
NuEnergy is targeting its first commercial gas sales from Tanjung Enim.
- Early Production Facility
- About 48% complete at September 30
- PGN CNG Mother Station
- 23% complete at September 30
- Initial gas sales target
- First quarter of 2027
- Initial production plan
- 1 million standard cubic feet per day
- Later development target
- An additional 24 million standard cubic feet per day
- Revised drilling concept
- 13 pairs of wells, replacing 209 proposed vertical wells