Bukit Asam optimistic Pertamina and PLN to buy its CBM

By Godang Sitompul

State-owned coal producer PT Bukit Asam Tbk (PTBA) is optimistic that state oil and gas company PT Pertamina and the state electricity company PT PLN would purchase natural gas produced from its coalbed methane wells in Tanjung Enim block, South Sumatra.

Bukit Asam's coalbed methane wells are expected to produce between 50 and 55 million standard cubic feet per day (MMSCFD) that would be sufficient as energy source for Pertamina and PLN operating in South Sumatra. "Our options for buyers (of the gas from coalbed methane project) are both PLN and Pertamina," President Director of Bukit Asam Milawarma told Petromindo.com.

Experts have said that unlike other natural gas from conventional reservoirs, coalbed methane contains very little heavier hydrocarbons such as propane or butane and no natural gas condensate. As such the CBM gas has become alternative energy source in many developed countries such as in Australia and the United States.

So far, in developing the block Bukit Asam and its partners PT Pertamina Hulu Energi (PHE) and Dart Energy have drilled two exploration wells. Bukit Asam and PHE each holds 27.5 percent interest while Dart Energy holds the remaining.

Editing by Adianto P. Simamora