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Indonesia’s first commercial coal bed methane (CBM) development has moved into full field development following regulatory approval of its initial plan, marking a milestone for the country’s unconventional gas ambitions.
The project, located in the Tanjung Enim area of South Sumatra, is operated by NuEnergy Gas, together with its Indonesian partners. After several years of pilot drilling and early gas production, the joint venture has now cleared the way to scale up operations under its approved Plan of Development Phase 1 (POD-1).
The move reflects growing confidence in the reservoir performance and commercial viability of CBM resources in Indonesia, where conventional gas output is gradually declining while domestic demand continues to rise.
Work at Tanjung Enim began with a limited number of appraisal and production wells aimed at proving gas flow from coal seams and establishing early sales. Those initial wells have delivered stable production, allowing the operator to supply small volumes of gas into the local network operated by state-owned distributor PGN.
With POD-1 now in place, the project is set to expand well numbers significantly, with plans calling for more than 200 wells over the initial development phase. Output is expected to ramp up progressively, targeting a plateau production level of around 25 million standard cubic feet per day once surface facilities and gathering systems are fully commissioned.
The development is being executed under an EPC framework led by PT Beijing Energy Linking (BJEL), which is responsible for engineering, procurement and construction across drilling, surface facilities and infrastructure.
Indonesia holds large CBM resources due to its extensive coal basins, but commercial development has long lagged behind that of conventional gas. The Tanjung Enim project is widely regarded as a test case for unlocking this potential at scale.
Government support has strengthened in recent years as policymakers look to CBM as a way to boost domestic gas supply, reduce reliance on coal for power generation and support industrial growth in regions close to production areas.
If successful, the project could serve as a blueprint for further CBM developments across South Sumatra and Kalimantan.
Moving from pilot production to full development requires substantial investment in surface infrastructure. Key elements include:
Wellhead facilities and gathering systems to collect gas from multiple production pads
Gas separation, dehydration and metering units
Pressure vessels, headers and manifolds for field processing
Transmission pipelines connecting the field to PGN’s gas network
These facilities typically operate in wet gas conditions and require materials with good corrosion resistance and long-term mechanical reliability.
Projects of this nature create demand for corrosion-resistant steels, alloy products and clad materials, particularly in gas processing and surface facilities.
For suppliers such as FUGO TECH, potential application areas include:
Clad plates for pressure vessels, separators and dehydration units, where corrosion-resistant linings are required
Stainless steel and nickel-based alloy pipes, fittings and flanges for gathering lines and process piping
Fabricated components such as vessel shells, tube sheets and headers used in gas handling equipment
As development activity accelerates, procurement of these materials is expected to increase, especially as operators seek to balance cost efficiency with durability in a humid, gas-rich operating environment.
Nanjing Fugo New Material Tech Co., Ltd. (Fugo Tech) is an ISO 9001 and PED 2014/68/EU certified manufacturer specializing in Clad Material (Explosive Clad Plates & Rolled Clad Plates/Clad Dish Heads/Clad Tube Sheets) and Titanium, Nickel Alloy, Copper Alloy and Stainless Steel products (Pipe/Tube/Fitting/Flange/Forging) which are widely used in the Heat Exchanger, Pressure Vessel, Reactor, Column, Tower, and other process equipment.
Fugo Tech offers different material combinations of Clad Plate (Explosion-welded clad plate/composite plate & Rolled-welded clad plate/composite plate) , and also offers a wide range of materials, including Titanium, Nickel Alloy, Copper, Cu-Ni, and Stainless Steel, along with custom processing services (Tube Sheet drilling, and Dish Head forming) for Oil & Gas, Petrochemical, Chemical, Energy, Paper & Pulp, Marine, Shipbuilding, Environment, Metallurgy, and New Energy Vehicles, with a strong focus on high-performance Clad Plate & Titanium & Nickel Alloy & Stainless Steel solutions.
For any new requirement, please contact: sales@fugo-tech.com
Fugo Tech is focused on the manufacturing of clad metal plate and distributes the Stainless Steel, Titanium, Nickel Alloy, Zirconium and other non-ferrous metal pipes, fittings, flanges, and fasteners.
