Indonesian Political, Business & Finance News

PGN Explores 9.7 TCF Tanjung Enim CBM Potential to Strengthen National Energy Security

| Source: VIVA Translated from Indonesian | Energy
PGN Explores 9.7 TCF Tanjung Enim CBM Potential to Strengthen National Energy Security
Image: VIVA

PT Perusahaan Gas Negara (Persero) Tbk (PGN) is actively seeking new, non-conventional supply sources to strengthen national energy security by implementing gasification programmes and utilising existing resources. One key initiative involves harnessing Coalbed Methane (CBM), a gas derived from coal, to be converted into methane and added to PGN’s supply.

PGN President Director Arief K. Risdianto stated that the exploration is part of efforts to strengthen domestic gas supply and reduce national energy imports, particularly by addressing infrastructure development challenges in the Pagardewa area and its surroundings. Beyond CBM, PGN is also pursuing potential supply from biomethane sourced from palm oil waste and Synthetic Natural Gas (SNG), with significant potential for all three sources in South Sumatra.

“In an effort to maintain supply stability while utilising available natural resources in South Sumatra, PGN is developing injection point infrastructure. This infrastructure will serve as a gas collection point, where gas from three supply sources—coalbed methane, biomethane, or other sources—will be gathered and then fed into the existing transmission pipeline,” Arief explained in a statement on Monday.

For PGN, the development of CBM in Tanjung Enim opens up opportunities to monetise domestic non-conventional gas resources that have not yet been optimised. This initiative also provides a diversification option for PGN’s domestic gas supply to support industrial and power generation needs. According to data from the Directorate General, the CBM potential in Tanjung Enim is estimated at 9.7 TCF Original Gas in Place, with an estimated gas value of US$15.4 billion. PGN has affirmed its technical and commercial readiness by preparing a gas utilisation scheme, with distribution projected to grow gradually from 1 MMSCFD to 25 MMSCFD.

On Friday (3/7/2026), PGN received a working visit from the Presidential Chief of Staff, General TNI (Ret.) Dudung Abdurachman, and his delegation at the Pagardewa Gas Receiving Station and Gas Compressor Station. The visit was also attended by the Commander of Regional Military Command II/Sriwijaya, the Regional Secretary of South Sumatra Province, the Regional Secretary of Muara Enim Regency, a member of the Muara Enim Regional House of Representatives, and other relevant stakeholders.

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