PT Perusahaan Gas Negara (PGN) is moving to develop coalbed methane (CBM) resources in the Tanjung Enim region of South Sumatra, tapping a resource it estimates holds significant economic value.
The state-owned gas distributor estimates the potential gas reserves in the area at approximately 9.7 trillion cubic feet, with an associated economic value of around US$15.4 billion.
The move comes as PGN continues to expand its domestic gas supply base, having recently announced plans to bring an additional 5 million standard cubic feet per day (MMSCFD) from the Sengeti field in Jambi province.
This development marks a strategic pivot toward unconventional gas sources as PGN seeks to diversify its supply portfolio beyond conventional fields.
The move comes as PGN continues to expand its domestic gas supply base, having recently announced plans to bring an additional 5 million standard cubic feet per day (MMSCFD) from the Sengeti field in Jambi province.
By targeting CBM in Tanjung Enim, the company is addressing the persistent challenge of securing stable, long-term gas supplies for Indonesia's power and industrial sectors.
Coalbed methane, extracted from coal seams, offers a cleaner-burning alternative to direct coal combustion and can be integrated into existing gas infrastructure with appropriate processing.