NuEnergy executes gas supply MoU for Tanjung Enim PSC
Thursday, September 28 2017 - 03:22 AM WIB
ASX-listed NuEnergy Gas Limited announced Thursday it has executed a Memorandum of Understanding (MoU) with PT Pertamina Gas, a subsidiary of Indonesia?s state-owned oil and gas firm PT Pertamina, to investigate the supply of coal bed methane (CBM) gas from Tanjung Enim PSC to Pertamina Gas for distribution to consumers in Sumatra.
Pertamina Gas is one of NuEnergy?s joint venture partners for the Tanjung Enim PSC. Pertamina Gas has a focus in midstream and downstream gas industry of Indonesia with its primary activity in trading, transportation, processing and distribution and other businesses related to natural gas and their associated products.
NuEnergy said in a statement that under the MOU, NuEnergy and Pertamina Gas have agreed to exchange information and to jointly evaluate the economic viability of CBM gas supply from Tanjung Enim PSC initial POD with the aim to utilize this CBM gas to fulfil Pertamina Gas consumer needs in Sumatra.
Deputy Executive Chairman of NuEnergy, Kee Yong Wah, said that the MOU with Pertamina Gas is a very significant step for NuEnergy to progress the Plan of Development (POD) preparation.
?We are delighted to be working with Pertamina Gas to be part of the domestic gas supply project in Sumatra. Additionally, we acknowledge the support of our joint venture partners, PT Pertamina and PT Bukit Asam, two leading state-owned energy and resources companies, in our discussions with Pertamina Gas at this important stage of the POD preparation,? he said.
He said that negotiations with a potential customer for the scale of Pertamina Gas at this stage further strengthens the company?s confidence in the ability produce significant shareholder value.
The MOU is an important step for the negotiation of the Gas Sales and Supply Heads of Agreement (GSSHOA) to agree on the main commercial terms including supply period, supply volume and price.
NuEnergy said it has received government approval to prepare the POD for Tanjung Enim PSC. The proposed concept for the initial POD plans for the development in two target areas, in the north and north-west of the PSC where NuEnergy has focused exploration, drilling and pilot production activities over the last 8 years.
?The POD preparation has commenced on schedule and NuEnergy plans to submit the POD to the Indonesian Minister of Energy and Mineral Resources by the end of 2017,? the company said.
Editing by Reiner Simanjuntak