NuEnergy Gas Limited has taken a significant step toward commercialising Indonesia’s first coalbed methane (CBM) production project, announcing a collaboration with PT Beijing Energy Linking (PT BJEL) to lead and fully finance the Tanjung Enim Plan of Development 1 (POD 1) in South Sumatra.
Under the agreement, PT BJEL will serve as the lead Engineering, Procurement, Construction and Commissioning (EPCC) contractor for the Tanjung Enim and Muralim production sharing contracts (PSCs).
The company will fund 100 per cent of the field development cost under a capped contract price, with repayment to occur through future gas sales agreed between the parties.
Importantly, the arrangement ensures that Tanjung Enim POD 1 — the first CBM plan of development approved in Indonesia — is now fully financed through to full-scale production.
The development scope covers the entire pathway from early gas sales through to production ramp-up, including drilling vertical and horizontal wells, constructing surface and pipeline infrastructure, and completing all integration and commissioning activities necessary to achieve sustained gas output.
The Tanjung Enim project will transition seamlessly from NuEnergy’s Early Gas Sales phase of around 1 million standard cubic feet per day (MMSCFD) to a full development scale targeting production plateau of 25 MMSCFD.
This marks a major milestone in Indonesia’s efforts to unlock CBM resources as part of its broader energy security and gas diversification agenda.
NuEnergy described the collaboration as “timely and strategic,” stressing that the fully funded development removes key financial hurdles and accelerates execution.
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