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Coalbed methane in Indonesia

World Coal,

Indonesian state owned coal company, Bukit Asam (PTBA), has announced it will begin to produce coalbed methane from its mining site in Tanjung Enim, South Sumatra, in 2014.

PTBA president and director, Milawarma, said the company’s CBM project has reached the preparation stage. The company aims to produce up to 40 million standard cubic feet (scf) per day.

The company is currently expanding its business from coal mining into CBM producer. Milawarma said the drilling of production wells had now been completed.

“[There are now] three holes already flaring up,” Milawarma said. “The pressure is good, but has not been stable enough yet, as the wells are still in the process of dewatering.”

The company estimates the Tanjung Enim site contains an estimated reserve of 0.8 trillion scf of CBM.

CBM from the site is expected to feed the power plant run by state run utility company, Perusahaan Listrik Negara (PLN). However, neither party has confirmed a CBM deal has been signed.

40 million scf/day would comfortably power a power plant with a capacity of 200 MW, PTBA said.

Pertamina Hulu Energy (PHE), another Indonesian state run company, and Dart Energy, an Australian oil and gas company, are working with PTBA to develop CBM production at Tanjung Enim.

Dart Energy owns 40% participation rights in the Tanjung Enim CBM block. 

Adapted from press release by Samuel Dodson

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