State Gas Company to Manage Coal Bed Methane at Banyuasin
Tuesday, 10 October, 2006 | 16:29 WIB

Tempo Interactive, Jakarta: PT Perusahaan Gas Negara (PGN), a state gas company, and the government of the Banyuasin Regency will organize a coal bed methane site at the Banyuasin Regency, South Sumatera.

Managing Director of PGN W.M.P Simandjuntak said the methane gas contained in the coal will be channeled through gas pipelines of I and II phases of South Sumatera-West Java transmission. The gas lines will start operating in 2006. “This will increase the endurance of energy in Indonesia,” he said yesterday (10/9) in Jakarta.

He explained that the South Sumatran shale is the largest potential area of coal containing methane gas: 183 trillion cubic feet. As much as 20 percent of methane gas lying beneath the coal, around 36 trillion cubic feet, can be made into liquefied natural gas (LNG).

Banyuasin Regent Amiruddin Inoed said that coal potential exist at the Banyuasin Regency I, Betung, the Banyuasin II, Rantau Bayur, Banyuasin III and the Rimau Island sub-district.

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