PGN to Develop Coalbed Methane Potential in Tanjung Enim

PT Perusahaan Gas Negara (PGN) is set to develop the potential of coalbed methane (CBM) in Tanjung Enim, South Sumatra. PGN estimates that the coalbed methane potential in the region reaches approximately 9.7 trillion cubic feet (TCF) of original gas in place (OGIP), with an estimated economic value of around US$ 15.4 billion.

PGN President Director Arief K. Risdianto stated that the development of CBM is part of the company’s strategy to seek non-conventional gas supply sources amidst the increasing domestic energy demand. Coalbed methane is natural gas trapped within coal seams, formed when plant material undergoes geological processes to become coal. This gas is projected to become a key domestic supply source to meet the needs of industry and power plants.

PGN targets the gas distribution from this project to be carried out gradually, starting from 1 million standard cubic feet per day (MMSCFD) up to 25 MMSCFD.

In addition to CBM, PGN is developing biomethane potential derived from palm oil waste, as well as synthetic natural gas (SNG) in South Sumatra. These three sources will be integrated through the construction of injection points or gas collection points before being flowed into the existing transmission pipeline network.

Arief believes that the integration of pipeline and non-pipeline infrastructure is key to accelerating the utilisation of domestic gas sources while strengthening the national energy supply. “With such infrastructure, gas originating from CBM, biomethane, or other sources can be collected and distributed through the existing transmission network,” said Arief, as quoted from a written statement on Monday, 6 July 2026.

Nevertheless, Arief noted that the implementation of the project still requires support from various stakeholders, particularly in resolving several administrative aspects and the construction of supporting infrastructure.