NuEnergy Gas Ltd. has commenced on-site construction of key production infrastructure for its Tanjung Enim Plan of Development 1 (POD 1) in South Sumatra, Indonesia.
The initial works mark a step forward for NuEnergy’s one million standard cubic feet per day (MMSCFD) early gas sales initiative (EGSI).
Site preparation and earthworks have started for both NuEnergy’s Early Production Facility (EPF) and an adjacent compressed natural gas (CNG) Mother Station, owned by downstream gas distributor PT Perusahaan Gas Negara Tbk (PGN).
Under the operational setup, gas from four existing EGSI wells will flow directly to NuEnergy’s EPF for initial processing, separation, and metering.
The treated gas will then be transferred to PGN’s CNG Mother Station for compression and delivery into the regional gas grid via the Pagar Dewa Station.
The start of construction follows a binding gas sales and purchase agreement signed between NuEnergy and PGN in December 2025.
Tanjung Enim POD 1 represents the first coal bed methane (CBM) plan of development in Indonesia. The broader project aims to ramp up production across two target areas to 25 MMSCFD, covering roughly 33 square kilometres of the Tanjung Enim production sharing contract area.
The initial 1 MMSCFD EGSI phase establishes the foundational processing and transport platform to commercialise early volumes, ahead of a planned second phase designed to deliver the remaining 24 MMSCFD through a fully funded field service contract.
NuEnergy holds four onshore CBM production sharing contracts across South Sumatra and aims to integrate these assets into a central regional gas hub.
The company is working with project contractors and Indonesian authorities to advance facility construction toward first commercial gas delivery.
