Govt expects to produce LNG from CBM before 2014

Indonesia expects to start producing liquefied natural gas (LNG) from coal bed methane (CBM) before 2014, making it the first country in the world to turn CBM into LNG, a senior governmental official said.

Director general for oil and gas Evita Herawati Legowo said Indonesia could be the first country producing LNG from CBM. "Australia aims at producing the LNG from CBM by 2014. If we want to be the pioneer, we must produce the LNG from CBM before the 2014," Evita said as quoted by the directorate's official website.

She added the target was possible as the required infrastructure would be ready by that time. According to Evita, the processing of the LNG from CBM can be done at the existing Bontang LNG plant in Bontang, East Kalimantan.

Evita said that, once the LNG had been produced, the output would be used for domestic market. "Once our LNG terminals have been completed in 2011, the CBM LNG can be used to supply gas demand in Java and Sumatera," she said.

Evita, however, added that the CBM utilization would be prioritized for electricity rather than LNG. "Once the allocation of CBM for electricity is completed in 2011, extra production can be used for LNG," Evita said.

Indonesia is estimated to hold huge reserves of CBM, which reach 453.3 trillion cubic feet (TCF) spread in 11 basins. Of the estimated reserves, as much as 112.47 TCF has been categorized as proven reserves and 57.60 TCF as potential reserves. (godang)