PGN to Develop Coalbed Methane Potential in Tanjung Enim

PT Perusahaan Gas Negara (PGN) will develop the potential of coalbed methane (CBM) in Tanjung Enim, South Sumatra. PGN estimates 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 said CBM development is part of the company’s strategy to seek unconventional gas supply sources amid increasing domestic energy needs. Coalbed methane is natural gas trapped within coal seams. This gas is formed when plant material undergoes geological processes and transforms into coal. The gas is projected to become a domestic supply source to meet industrial and power generation needs. PGN is targeting gas distribution from this project to be carried out in stages, starting from 1 million standard cubic feet per day (MMSCFD) up to 25 MMSCFD. Besides CBM, PGN is developing the potential of biomethane derived from palm oil waste and synthetic natural gas (SNG) in South Sumatra. The three sources will be integrated through the construction of an injection point or gas collection point before being channelled into the existing transmission pipeline network. Arief assessed 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 this infrastructure, gas originating from CBM, biomethane, and other sources can be collected and distributed through the existing transmission network,” Arief said in a written statement on Monday, 6 July 2026. However, Arief noted that project implementation still requires support from various stakeholders, particularly in resolving several administrative aspects and building supporting infrastructure.