State run oil and gas firm PT.
Pertamina Hulu Energi ( PHE ), has set aside US$50 million for the development
of coal-bed methane ( CBM ) from 2009 until 2015.
The money will be used for
exploration activities in the first three years, but if we calculate the next
phase until the fifth year, the amount of investment will exceed $50 million,”
he told reported on the sidelines of the Indo CBM 2012 in Jakarta on Thursday.
Budi said the company had
seenpotential market targets for CBM in the future. For blocks in sumatera, CBM
could be sold to PT Pupuk Sri wijaya ( Pusri ), state power company PT PLNs
power plants and city gas services.
In Sangatta, the gas could be
utilized by the Bontang Liquefied natural gas ( LNG ) plant, PT Pupuk
Kalimantan Timur, power plants and city gas,while the gas from Tanjung might be
delivered for a new LNG or compressed natural gas ( CNG ) plant that might be
set up in South Kalimantan.
As previously reported, PHE and
PLN have agreed to jointly develop CBM for electricity in Sangatta and Muara Enim.
The power company expects production of Sangatta could reach 0,1 MMSCFD, and
0,5 MMSCFD in Muara Enim.
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