Conrad Asia Energy Ltd (ASX: CRD) has made significant strides in commercialising its shallow-water gas discoveries in the offshore Aceh production sharing contracts (PSCs).
The company’s progress underscores its commitment to unlocking substantial gas resources while exploring long-term growth opportunities in a region poised for energy development.
The Aceh PSCs, spanning approximately 20,000 square kilometres, boast a gross 2C Contingent Resource of 214 billion cubic feet (Bcf) of sales gas, with 161 Bcf net attributable to Conrad across three gas accumulations.
This resource base forms the foundation of Conrad’s commercialisation efforts in the region.
A key development in Conrad’s strategy is the memorandum of understanding (MOU) signed with PT Perusahaan Gas Negara Tbk (PGN), Indonesia’s largest gas company.
This partnership is driving the exploration of commercialisation options, with a particular focus on small-scale liquefied natural gas (LNG).
The viability of small-scale LNG has been confirmed by a high-level feasibility study conducted by THREE60 Energy.
The study indicates that small-scale LNG facilities with a capacity of less than 0.5 million tonnes per annum are both technically and commercially viable, supported by proven LNG technologies in Asia.
Beyond the discovered shallow-water resources, Conrad’s PSCs hold an impressive 15 trillion cubic feet (Tcf) of gross prospective resources, including 11 Tcf net attributable to Conrad.
This vast potential underscores the significant growth opportunities within the company’s portfolio.
The partnership with PGN is centred on developing small-scale LNG infrastructure, capitalising on the nearshore location and high methane content of Conrad’s Aceh resources.
This approach is well-suited to support the region’s growing gas demand, particularly for local industrial and mining activities.
Miltos Xynogalas, Managing Director and CEO of Conrad Asia Energy, expressed optimism about the company’s progress: “We have made substantial progress with our Aceh gas resources over the past year.
“The gas markets in Aceh continue to grow, providing exciting opportunities for commercialising our discovered resources.
“Small-scale LNG is emerging as a particularly promising option, with numerous similar projects achieving commercial production across Asia.”
Xynogalas further highlighted the strategic importance of the Aceh PSCs, stating: “Conrad’s Aceh PSCs, with their blend of shallow and deep-water exploration potential, represent a pivotal part of our growth strategy.
“With further 3D seismic surveys and ongoing collaboration with PGN, we are committed to advancing this critical project to realise its full potential for the region and our stakeholders.”
As Conrad Asia Energy continues to advance its Aceh gas commercialisation efforts, the company is well-positioned to capitalise on the growing energy demand in Southeast Asia while contributing to Indonesia’s goal of doubling gas production by 2030.
