NuEnergy in talks with KAI for CNG transport

By Godang Sitompul

ASX-listed NuEnergy is in talks with state-owned railway operator PT Kereta Api Indonesia (KAI) for the transport of CNG from the Muara Enim PSC in South Sumatra to power plants and industrial customers in Palembang and Lampung.

NuEnergy is developing coal bed methane (CBM) resources in Muara Enim. The company plans to deliver the gas in the form of compressed natural gas (CNG) to customers.

?Our plan is to deliver the CBM in the form of CNG using train and trucks,? NuEnergy Gas Indonesia Country Manager Yales Vivadinar told Petromindo.com Monday.

NuEnergy expects CNG to increasingly become an important alternative source of energy in Indonesia given that it?s much cheaper and cleaner than fuel diesel.

Editing by Reiner Simanjuntak