KUALA LUMPUR: Globaltec Formation Bhd's (GFB) unit has secured the environmental permit for Indonesia's Tanjung Enim plan of development (POD), marking a significant milestone towards developing and commercialising Indonesia's first coal bed methane (CBM) development.
CBM is a form of natural gas found in coal deposits or coal seams and considered an unconventional gas asset.
Trading in GFB's shares were halted for an hour following the announcement to Bursa Malaysia Securities. It will resume at 10am. It last traded at 60 sen a share.
GFB's 65 per cent owned subsidiary, NuEnergy Gas Limited's unit, Dart Energy (Tanjung Enim) Pte. Ltd, obtained the environmental permit dated September 26, 2023, on October 2, 2023.
Tanjung Enim is also NuEnergy's first CBM.
In a filing with Bursa Malaysia Securities, NuEnergy said with the environmental permit in place, it is now in a position to work towards completing the final preparations for early gas production for the project.
NuEnergy will start with a modest initial phase of gas sales, estimated at 1 million standard cubic feet per day (mmscfd) of CBM to PT. Laras Ngarso Gede (Laras Energy). This offtake will underpin the initial phase of the project, progressing production to 25 mmscfd of gas as approved under the Tanjung Enim POD.
On February 10, 2023, NuEnergy signed a heads of agreement with Laras Energy, which was later extended on August 10, 2023, for the supply and sale commitment by NuEnergy and the purchase commitment by Laras Energy, of CBM produced from Tanjung Enim's POD 1.
NuEnergy is currently working on a draft gas sales agreement with Laras Energy, which will include more detailed agreed terms.
NuEnergy is an independent clean energy company focused on the development of Indonesian unconventional gas assets. It holds four onshore CBM production sharing contracts across South Sumatra, Indonesia.
