Medco proposes underground coal gasification development

By Godang Sitompul

IDX-listed energy company PT Medco Energi Internasional Tbk has proposed to develop underground coal gasification potential in Sumatra and Kalimantan to the Ministry of Energy and Mineral Resources, according to a source.

The source said that Minister of Energy and Mineral Resources Ignasius Jonan was scheduled to hold a meeting at 5 p.m. on Wednesday with the Directorate General of Mineral and Coal, and Medco over the proposal as the company proposes for the application of coal mining regime in the project, instead of the production sharing system applied in oil and gas.

The source said that production of synthetic gas through the development of underground coal gasification will help increase gas resources in the country.

?Medco is looking at underground coal gasification potential. The company is lobbying the ministry,? the source said, without providing further details.

Editing by Reiner Simanjuntak