NuEnergy secures full funding deal to advance Indonesia’s first commercial CBM project

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With Indonesia’s first commercial coal bed methane (CBM) gas delivery only months away, NuEnergy Gas has agreed with PT Beijing Energy Linking (PT BJEL) to finance and build its flagship Tanjung Enim project, Cairns Post reports. The partnership with the clean energy-focused group strengthens NuEnergy’s (ASX: NGY) transition towards full-scale production, complementing its low-capital-expenditure development model. Under the agreement, PT BJEL will serve as the lead Engineering, Procurement, Construction and Commissioning (EPCC) contractor for the Tanjung Enim CBM development, where NuEnergy has recently finished drilling the final well of a four-well early gas programme. The scope also extends to the nearby Muralim Production Sharing Contract (PSC). PT BJEL operates as an international investment and engineering platform backed by Beijing Energy International and Envision Group , both of which have established involvement in Australia’s clean energy industry. Importantly, PT BJEL will fully finance all field development activities needed to reach first gas sales and scale up production under the Tanjung Enim Plan of Development Phase 1 (POD 1), with costs capped under the contract. The works include drilling vertical and horizontal wells, constructing surface facilities, installing pipelines, managing integrated operations, and completing other necessary infrastructure. Initial revenue from Tanjung Enim POD 1 is targeted for 2026. The first four completed wells are expected to support early gas sales of around 1mn standard cubic feet per day (MMSCFD), with subsequent development lifting output to the approved capacity of 25 MMSCFD. While NuEnergy has not disclosed the total capital expenditure for the 25 MMSCFD project, analysts at MST Access estimate an overall investment of approximately $130mn . This figure covers NGY’s approved 209 wells, land and site preparation, and the in-field gas gathering system. At peak production of 25 MMSCFD, MST projects annual revenue of roughly $60mn . With NuEnergy retaining a 95% gross split, forecast free cash flow is estimated at about $50mn per year. All early gas volumes are secured under a 13-year binding gas sales agreement with PGN, ensuring guaranteed offtake from the outset. Development costs advanced by PT BJEL will be repaid through future gas sales, significantly lowering balance sheet risk as production ramps up. NuEnergy chief executive Lim Beng Hong described the agreement as a major milestone for Indonesia’s nascent CBM industry. “This partnership delivers the funding certainty and delivery capability needed to move Indonesia’s first CBM plan of development from early gas into full commercial production,” he said. “By pairing NuEnergy’s first-mover advantage with PT BJEL’s engineering, construction and financing strength, we can concentrate on execution, commercial growth and long-term value creation, while contributing to Indonesia’s rising energy demand and net-zero goals.” Coal-bed methane has been identified by the government as a key transition fuel as Indonesia balances surging energy requirements with its climate commitments. Over the longer term, NuEnergy plans to position Tanjung Enim as a central hub to develop the surrounding acreage that includes its other PSCs. © 2026 bne IntelliNews, source Magazine

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