PGN to produce coal bed methane in cooperation with three foreign partners

Jakarta (Antara News) - State-owned gas company PGN will initiate cooperation with three foreign partners in the production of coal bed methane (CBM) in South Sumatra and Central Kalimantan.

PGN Managing Director WMP Simandjuntak disclosed at a fast breaking get together here early this week that PGN will establish a consortium with the three foreign partners comprising Santos from the United States and Aero and Global from Australia.

The gas company has developed the CBM industry in South Sumatra and the development of the industry in Central Kalimantan will be started in 2007, Simanjuntak explained.

PGN is currently making an approach to the Central Kalimantan administration for the development of the CBM industry in the province believed to have 50 trillion cu.feet of coal.

Coal bed methane gas to be produced will be used to meet the need of gas fuel in the two provinces. The supply will be channeled through pipelines. (*)
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