Medco expects legal umbrella for underground coal gasification
Saturday, January 28 2017 - 05:05 AM WIB
PT Medco Energi Mining Internasional (MEMI), a subsidiary of IDX-listed energy company PT Medco Energi Internasional Tbk, expects the Ministry of Energy and Mineral Resources to quickly issue a regulation on underground coal gasification (UCG) that would serve as legal umbrella for the company to realize its planned UCG projects in South Sumatra and Kalimantan.
Budi Basuki, COO of Mining and Power at Medco Energi, said recently that the company is hopeful for the regulation to be issued soon following coordination among related directorate generals at the ministry.
He said that the company is ready to implement pilot project if there is regulatory certainty for the development of UCG.
As has been previously reported, MEMI plans to develop UCG project in South Sumatra and Kalimantan, the country?s key coal producing regions, to help increase gas supply in the country. The company has proposed for the application of coal mining regime in the project, instead of the production sharing system applied in oil and gas.
In 2015, Medco said it planned to team up with up Ascot Energy and ASX-listed Cougar Energy Ltd in the UCG projects.
Meanwhile, Director for Coal and Mineral Development Program at the ministry, Sri Rahartjo said the government was still in the process of reviewing a planned policy for UCG development in the country.
Editing by Reiner Simanjuntak