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NuEnergy fires up for transformational 2026 after breakthrough December quarter

• NuEnergy Gas is fast-tracking growth after securing full funding for its Tanjung Enim 25MMSCFD Plan of Development
• Investor momentum is building and shares are up more than 75% from November as analysts significantly lift valuations
• First gas is in sight for Indonesia’s first CBM producer, with all four early wells complete and sales to state‑owned distributor PGN set to begin in H1 2026​​​​​​​

Special report: After firing up progress in the December quarter, NuEnergy Gas is fast entering execution mode for a transformational 2026.

Savvy investors are taking note with NuEnergy’s (ASX: NGY) share price up more than 75% over the past three months – and analysts tipping even more upside.

That’s on the back of the very near-term producer locking in several key milestones that put it firmly on track for first commercial sales in H1 2026 from its flagship Tanjung Enim coalbed methane (CBM) project in South Sumatra.

But another major development on NGY’s path to full field development came just after quarter-end, when NGY signed a game-changing Collaboration Agreement with PT Beijing Energy Linking (PT BJEL).

This sets up NGY as Indonesia’s first CBM producer as the nation looks to power a forecast economic growth rate of 5.4% for 2026 while reducing reliance on coal and energy imports.

Fully funded roadway

In a landmark deal for its Tanjung Enim Plan of Development (POD 1), NGY signed the Collaboration Agreement with PT BJEL earlier this month.

Further derisking NGY’s near-term production and growth plans, the deal means PT BJEL will fund all field development required to achieve first gas sales and production ramp-up at Tanjung Enim, at a capped contract price.

While NGY has not publicly disclosed the capex for the 25MMCFD project, analysts at research firm MST Access have estimated a total investment of ~US$130 million for all the approved 209 wells, land and site preparation, as well as in-field gathering systems.

The PT BJEL collaboration was a major catalyst in MST lifting its valuation on NGY to 13c a share, +200% upside on its current 4c share price and a 10% lift on the broker’s December valuation.

Under the terms of the collaboration agreement, NGY will repay development costs to PT BJEL via future gas sales, substantially cutting the near-term producer’s balance sheet risk.

MST forecasts ~US$60m revenue per annum at the forecast plateau production of 25MMCFD. Allowing for NGY’s gross split share of 95%, this brings free cash flow to an annual ~US$50m.

Sales locked in

Adding to NGY’s strong commercial momentum, the company signed a 13-year binding Gas Sales and Purchase Agreement (GSPA) with PT Perusahaan Gas Negara (PGN), Indonesia’s leading gas distributor and a subsidiary of state-owned energy giant Pertamina.

This agreement formalises the sale of 1MMSCFD of CBM from Tanjung Enim, with first revenue expected in the first half of this calendar year.

It also demonstrates Indonesia’s support for CBM as a reliable, cleaner energy source for the nation’s rapidly growing energy market.

That vision aligns with Indonesia’s national energy strategy, which prioritises local, low-emission gas production, which CBM can provide.

Source: Stockhead​​​​​​​