NuEnergy signs CBM gas supply MoU with Pertamina in Indonesia

Globaltec Formation’s subsidiary NuEnergy Gas has signed a memorandum of understanding (MoU) with PT Pertamina Gas to evaluate the possibility of supplying coal bed methane (CBM) gas from the Tanjung Enim production sharing contract (PSC) in Indonesia.

The gas will be supplied to Pertamina for distribution to consumers in Sumatra.

Under the terms of the MoU, NuEnergy and Pertamina are expected to exchange information and collaborate to jointly assess the commercial feasibility of CBM gas supply to meet the energy needs of local citizens.

The MoU is said to be an important step in the preparation of the plan of development (POD).

NuEnergy deputy executive chairman Kee Yong Wah said: “We are delighted to be working with Pertamina Gas to be part of the domestic gas supply project in Sumatra. Additionally, we acknowledge the support of our joint venture partners, Pertamina and PT Bukit Asam, two leading state-owned energy and resources companies, in our discussions with Pertamina Gas at this important stage of the POD preparation.

“Negotiations with a potential customer of the scale of Pertamina Gas at this stage further strengthens our confidence in our ability to produce significant shareholder value.”

According to the company, the MoU is also a key feature that will assist in the negotiation of the gas sales and supply heads of agreement (HOA) to reach an agreement on the main commercial terms such as supply period, supply volume and price.

The company is planning to submit the POD to the Indonesian Minister of Energy and Mineral Resources by end of the year.