Medco hopes coal gasification project to start production 2019
Wednesday, July 1 2015 - 01:42 AM WIB
Mining company PT Medco Energi Mining Internasional, a subsidiary of IDX-listed energy company PT Medco Energi Internasional Tbk, hopes its planned underground coal gasification (UCG) project in Musi Banyuasin, South Sumatra, to be able to start gas production in 2019, Bisnis Indonesia reported on Wednesday.
The paper quoted company Vice President for Corporate Strategy and Commercial, F. Hary Kristiono as saying that exploration work is expected to take about three years. He added that the company is currently seeking for the necessary permit to begin exploration.
Hary said that exploration results would later determine whether the project is feasible for the company to proceed.
Medco has been teaming up with ASX-listed Cougar Energy Ltd since 2011 in developing the UGC project. Cougar is responsible in providing the necessary technology and financing of US$3 million for the initial study. (*)