PGN to Process Coal into Gas, Potential Reaches 9.7 Trillion Cubic Feet

PT Perusahaan Gas Negara (Persero) Tbk (PGN) has begun developing coalbed methane (CBM) potential in Tanjung Enim, South Sumatra, as a new gas supply source to strengthen national energy security. According to data from the Directorate General of Oil and Gas, the original gas in place (OGIP) for CBM in Tanjung Enim is estimated at around 9.7 trillion cubic feet (TCF), with an estimated economic value of US$15.4 billion. For PGN, the development of CBM could unlock the monetisation of domestic non-conventional gas resources that have not yet been optimised. This initiative may also serve as a gas supply diversification option for PGN to support industrial and power generation needs. PGN has prepared technical and commercial schemes for gas utilisation, targeting a phased distribution starting from 1 million standard cubic feet per day (MMSCFD) and eventually increasing to 25 MMSCFD. PGN President Director Arief K. Risdianto stated that besides CBM, the company is also exploring supply potential from biomethane derived from palm oil waste and synthetic natural gas (SNG), noting that the potential from these three sources is substantial in South Sumatra. To maintain supply stability while utilising available natural resources, PGN is developing injection point infrastructure. This infrastructure will serve as a gas collection point where gas from CBM, biomethane, and other sources will be gathered before being fed into the existing transmission pipeline. The integration of pipeline and non-pipeline infrastructure is key to effective energy absorption. Leveraging its solid track record and extensive gas infrastructure portfolio as Pertamina’s Gas Subholding, PGN is ready to play a strategic role as the main bridge between gas supply sources and the public, while adhering to good corporate governance principles. The commitment to accelerate the project has received government support. During a working visit to the Pagardewa Gas Receiving Station and Compressor Station, the Chief of the Presidential Staff, Dudung Abdurachman, emphasised that the acceleration of CBM utilisation is a matter of common concern due to its strategic value for national interests. He noted that while some administrative aspects still need to be resolved, including adjustments to the Detailed Spatial Plan (RDTR), all parties have agreed on the importance of expediting completion in accordance with applicable regulations. The Presidential Staff Office is encouraging the resolution of cross-sectoral obstacles so that the commercialisation of coalbed methane from the Muara Enim area can proceed promptly. PGN President Director Arief K. Risdianto expressed appreciation for the support, stating that PGN is committed to leading solutions to overcome infrastructure development challenges in the Pagardewa area and surrounding regions, and to delivering clean, reliable domestic energy solutions that provide a broad multiplier effect for the community and contribute to the regional economy.