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Yahoo
21-05-2025
- Business
- Yahoo
Indonesia Signs Swap Deals to Ensure Domestic Gas Supply
Indonesian natural gas producers have signed a multi-party gas swap agreement with Indonesian and Singaporean traders aimed at increasing gas supply security in western Indonesia. As gas production in Sumatra in western Indonesia is falling, local companies and regulators looks to redirect domestic gas supply to meet local demand while selling overseas gas from other areas. In a deal signed on Wednesday, Indonesian gas producer Medco Energi Internasional signed a multi-party swap agreement with companies including state energy firm PT Pertamina and Singaporean and Indonesian gas traders Oil Natuna Sea B.V., Star Energy (Kakap) Ltd., Sembcorp Gas Pte Ltd., Gas Supply Pte Ltd., Petrochina International Jabung Ltd., and PT Perusahaan Gas Negara (Persero) Tbk (PGN). Under the agreement, specific gas volumes will be supplied to Singapore from the West Natuna Supply Group, replacing volumes currently delivered from Corridor Block and Jabung PSC, the so-called South Sumatra Sellers. These redirected volumes will then be allocated to meet domestic gas demand, with PGN serving as the domestic buyer. 'This collaboration demonstrates a strong example of productive synergy between upstream operators, the regulator, partners and buyers in ensuring gas supply across both domestic and international markets,' MedcoEnergi director and chief operating officer, Ronald Gunawan, said in a statement. Indonesian gas demand is rising, while production at some legacy gas fields is dropping. The country has started replacing diesel as a fuel in dozens of power plants with LNG, which is set to boost demand for natural gas in one of the world's top LNG exporters. Last month, Indonesia awarded five strategic oil and gas blocks to international and domestic players in a bid to reverse its decade-long production decline and bolster energy security. The awards are part of Indonesia's broader upstream revival strategy, with nearly 60 additional blocks expected to be offered over the coming years. 'The government hopes these auction winners will be able to contribute to Indonesia's energy security ahead,' said Tri Winarno, a senior official at the Ministry of Energy and Mineral Resources. By Charles Kennedy for More Top Reads From this article on
Reuters
05-05-2025
- Business
- Reuters
Indonesia's Bukit Asam eyes $3.1 bln plant to convert coal to synthetic natural gas
JAKARTA, May 5 (Reuters) - Indonesian state coal miner Bukit Asam is studying a plan to invest $3.1 billion into a plant to convert coal into synthetic natural gas, its chief executive said on Monday. It would be Bukit Asam's latest attempt to produce gas from coal, as the government pushes for domestic value addition on its natural resources, after its partner pulled out from a project to produce dymethyl ether gas. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Bukit Asam plans to convert 8.4 million metric tons of low-grade coal of around 3,700 kcal/kg GAR into 240 billion British thermal unit per day (1.6 million metric tons per year), Arsal Ismail, chief executive of Bukit Asam told members of parliament. "Some of Bukit Asam's low-grade coal reserves would be very suitable for conversion into synthetic gas," Arsal said, adding the project is aimed at meeting future gas demand in Indonesia. The company plans to form a joint venture with state-controlled gas distributor Perusahaan Gas Negara (PGN) and a technology provider to build the plant, he said, without naming the technology provider. Bukit Asam and PGN are currently conducting a feasibility study for the project, including the projected cost of the gas it will produce and its competitiveness against liquefied natural gas. Arsal said an initial study indicated that the synthetic gas would be competitive against imported LNG. Indonesia is currently a net exporter of LNG, but some analysts expected that it could turn into a net importer by early 2040s. Bukit Asam previously partnered with U.S. firm Air Products (APD.N), opens new tab to convert coal into dimethyl ether, to produce substitution to liquefied petroleum gas popularly used as cooking fuel. Air Products, however, pulled out of the project in 2023 to redeploy its capital in other projects. Bukit Asam is currently in talks with a number of Chinese companies for potential partnership to replace Air Products, Arsal said.
New Straits Times
29-04-2025
- Business
- New Straits Times
Globaltec's Australian unit gears up for early coal bed methane sales
KUALA LUMPUR: Globaltec Formation Bhd's Australia-listed unit, NuEnergy Gas Ltd, has commenced drilling site preparation activities at its Tanjung Enim production sharing contract (PSC) in South Sumatra, Indonesia. This comes as the group moves closer to first coal bed methane production under its early gas sales initiative, NuEnergy said in its quarterly activities report, which Globaltec filed with Bursa Malaysia today. The company, through its subsidiary Dart Energy (Tanjung Enim) Pte Ltd, finalised a gas sales and purchase agreement with Indonesia's national gas distributor PT Perusahaan Gas Negara (PGN) at the end of 2024. The drilling site preparation work involves building access roads, repairing bridges, clearing land and constructing foundations, mud pits and flare stacks. Featured Videos The area also includes a site designated for PGN's compressed natural gas facility. The first of four wells is expected to be spudded in May. Elsewhere, NuEnergy continues dewatering operations at its Muralim PSC, also in South Sumatra, to gather gas production data. It is also awaiting government approvals to advance environmental permitting at its Muara Enim PSC. Separately, the company is in the process of relinquishing its Muara Enim II PSC. During the March quarter, NuEnergy posted a net operating cash outflow of A$143,000 and capital expenditure of A$822,000. Its cash and cash equivalents stood at A$3.92 million at the end of the quarter, giving it an estimated funding runway of four quarters based on current expenditure levels. NuEnergy, an independent clean energy company focused on Indonesian unconventional gas, holds three coal bed methane PSCs in South Sumatra. It aims to integrate these assets into a coal bed methane production hub, targeting sustainable energy supply for Indonesia's growing market.
