First CBM is expected to flow in Q1 2011

Oil and gas upstream sector regulator BPMIGAS expects the country's first coal bed methane (CBM) to flow in the second quarter of the year.

BPMIGAS' operational deputy chairman Budi Indianto said the gas will flow from the West Sangatta I field in East Kalimantan, which is operated by West Sangatta CBM Ltd.

The firm has completed the driling of three wells and has been driling the fourth well since January this year, according to Budi.

"The target is that the first gas will be produced in May at a rate of 1 MMCFD, which is enough to produce 2.5 MW of power," Budi said in a workshop in Bandung on Wednesday.

Aside from West Sangatta, there are four other companies which are also expected to start producing CBM this year, that is Medco Energi International from the Sekayu field, Arrow PTE from Tanjung Enim field, Indobarambai from Barito Banjar field and VICO from Sanga-Sanga field. All the fiels are expected to produce 1 MMCFD, except for Sanga-Sanga field which is expected to produce 1.5 MMCFD.

"All the other contractors will start producing in the third quarter of the year," Budi said, adding the five companies will produce a combined 5.5 MMCFD of CBM, an amount able to generate 13.7 MW of power.

The gas is expected to fuel power generators that will supply power to the surrounding communities, he said. (Giok/Kanti)