KOTA KINABALU: Led by Tan Sri T. C. Goh, Permanent Honorary President of the Federation of Chinese Associations Malaysia (Huazong) and President of the Federation of Chinese Associations Sabah, Globaltec Formation Berhad (Glotec) (GLOTEC, 5220, Main Market Industrial Products & Services) is making good progress through its Australia-listed subsidiary, NuEnergy Gas Limited, with the drilling operations of Indonesia’s first commercial coal bed methane (CBM) well.
The project is expected to begin supplying natural gas to an Indonesian state-owned enterprise in the first half of next year (2026).
Tan Sri T. C. Goh, who is also Executive Chairman of Glotec, said the project will help support and meet Indonesia’s growing demand for natural gas and solidifies Glotec’s position in Indonesia’s energy market.
He expressed satisfaction with the project’s progress, noting that everything is proceeding as expected. The development further strengthens the Group’s presence in Indonesia’s energy market and demonstrates its commitment to achieving commercial production.
NuEnergy Gas Limited, an Australia-listed subsidiary in which Glotec holds a 30% stake, is expected to commence its first sale and delivery of natural gas to Indonesia’s state-owned gas distribution company, PT Perusahaan Gas Negara TBK (PGN), in the first half of next year. PGN will subsequently process, compress, and distribute the gas.
According to a recent announcement by NuEnergy Gas Limited, its subsidiary Dart Energy (Tanjung Enim) Limited signed a Gas Sales and Purchase Agreement with PGN on the 17th of this month. The first sales are expected to begin in the first half of next year, with a total contracted volume of 5.59 billion standard cubic feet (BSCF).
The Sales and Purchase Agreement will remain effective until the expiry of the Tanjung Enim Production Sharing Contract (PSC) on 3 August 2039, or until the total contracted volume has been delivered, whichever occurs first.
NuEnergy is developing the Tanjung Enim coal bed methane (CBM) project located approximately 218 kilometres from Palembang, South Sumatra. This is also the first CBM drilling and production project undertaken in collaboration between NuEnergy and Indonesia. The project has received approval covering two target areas with the development of 209 wells.
In addition, approval has been granted by Indonesia’s Ministry of Energy and Mineral Resources for the sale of produced natural gas to the Indonesian state-owned gas distributor, PGN, with a target daily sales volume of 1 million standard cubic feet per day (MMSCFD) of coal bed methane.
Tan Sri T. C. Goh described the project as an important milestone in the Group’s expansion and internationalisation strategy. With the concerted efforts of its professional team, and the cooperation and support of the Indonesian government and related state-owned enterprises, he said the project is progressing and being implemented largely as planned.-pr/BNN
