Conrad Asia Energy: West Natuna Connected to Indonesia

(23 June 2026)--Conrad Asia Energy Ltd (ASX: CRD) (Conrad or the Company) has been informed that PT PLN Energi Primer Indonesia (“PLN EPI”) has completed the "hot tap" connection on the West Natuna Transportation System (“WNTS”) to the Pemping gas pipeline project. This is the delivery point for Conrad’s Mako gas field, which is currently being developed and will be tied into the WNTS. Gas will ultimately be transported into Indonesia when Mako commences production in the 4th quarter of 2027. This is an important step in developing infrastructure that will connect Natuna gas supplies to Indonesia's domestic energy market.

The "hot tap" connection into an existing operating pipeline is a highly specialised engineering process that allows a new pipeline to be connected without interrupting the gas flow on the WNTS. The work was performed on a pipeline carrying approximately 300 million cubic feet of gas per day, operating at 1,096 psi pressure, and located at a depth of 29 metres underwater. This is considered one of the higher-risk and most technically challenging stages of the pipeline installation process. PLN EPI expects the pipeline will enter commissioning this week, followed by initial gas deliveries of around 25 million cubic feet per day from existing Natuna Sea gas producers to support a Batam power system.

Conrad is delighted that this complex operation has been completed. As previously announced, PLN EPI has also signed a gas sales agreement with Conrad’s West Natuna Exploration Limited for up to c 111 million cubic feet of sales gas per day (mmscfd) during the period 2027–2037. Conrad’s facilities are designed to process up to a maximum of 172 mmscfd, and this production upside will be a function of the field’s demonstrated productive capabilities, adjoining prospectivity and demand for gas in the region.

Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented: “The connection of the West Natuna Basin into Batam is extremely important for Indonesia and the Natuna Sea gas producers. Conrad’s Mako gas field is currently the largest undeveloped gas field (2P of 330 billion cubic feet, gross) in the West Natuna Basin. When production commences in late 2027, Mako will make a significant contribution to the strong energy demand in Batam and Sumatra. Gas into the region will improve energy security and reduce reliance on fuel oil with lower emissions. Conrad, which discovered Mako in 2017, is delighted that the field will finally be brought into production, supplying gas into Indonesia. The facilities at Mako are being constructed to process additional gas above the contracted volumes with the expectation that additional gas will be discovered in the immediate area.

Mako is one of several discovered gas resources within our portfolio and the first of what we expect to be a growing gas production profile that will deliver production growth for our company and Indonesia well into the next decade.” (ends)