NuEnergy Gas Limited announced the results of its first independent shale gas-in-place resource estimates which have been reported by the Institute of Technology Bandung (ITB) for its South and Central Sumatra PSCs, Muara Enim (ME), Muara Enim II (ME II) and Rengat.
NuEnergy, as an existing PSC holder in Indonesia, has pre-emptive rights to develop and commercialise shale gas resources in their existing PSCs. This additional undeveloped resource, will be further evaluated by NuEnergy by joint study groups with the Government of Indonesia and has the potential to add further economic value for the company.
NuEnergy has the capability and advantage to commercialise these additional resources considering the strategic location of the PSCs. All of NuEnergy’s Indonesian PSCs are adjacent to major gas pipeline infrastructure connected to the following significant under supplied gas markets:
- The Singapore gas pipeline which connects NGY PSCs to the +1.1 billion cubic feet (BCF) per day Singapore gas market;
- The 425 million standard cubic feet per day (mmscfd) Chevron Duri Steam Flood project located in Sumatra; and
- The pipeline to the Jakarta / West Java, which has a capacity of 440 mmscfd.
The Singapore and Duri Steam Flood gas markets offer the opportunity of oil equivalent gas prices between 75 and 95% of indexed crude oil prices.
LNG World News Staff, October 08, 2012; Image: NuEnergy