PT PGN to develop coalbed methane gas as alternative energy source

Jakarta (Antara News) - State-owned gas firm PT Perusahaan Gas Negara (PT PGN) plans to develop coalbed methane gas as an alternative energy source to replace fuel oil, a spokesman said.

"We will develop coalbed methane gas in Musi Rawas in particular because it has great potential," PT PGN president director WMP Simandjuntak said after signing a memorandum of understanding on exploitation and utilization of CBM with Ridwan Mukti, head of the Musi Rawas district administrtaion, here Friday.

According to him, Indonesia haS over 453 trillion cubic feet (TCF) of methane gas reserves in some areas, including in South Sumatra which haS 183 TCF.

PGN would give priority to the project to develop the gas in the province.

He said gas reserves would deplete over a certain period of time if they were used for human needs.

The gas could be used as an alternative energy source in view of its similar characteristrics with the gas PGN had been producing so far and the gas could also be distributed through pipeline networks.

The company would exploit the gas to the optimum by using its pipeline network. It was building 450 kms of gas pipelines connecting South Sumatra with West Java and another 661 kms with a total capacity 1,000 MMSCFD to supply industry, commerce and households. The pipeline networks were scheduled to become operational next November 2006 and March 2007. (*)
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