PGN, Banyuasin sign MoU on CBM exploitation

State gas distribution firm PT PGN on Monday signed an MoU with Banyuasin regency of South Sumatra to exploit coal-bed methane (CBM) potential in the regency.

?PGN expected to explore CBM in the regency on 2007,? CEO WMP Simandjuntak said in Jakarta.

Earlier PGN had signed MoU with Musi Banyuasin regency, Musi Rawas regency to exploit CBM. Both regencies are also part of South Sumatra province.

South Sumatra is believed to have potential of 175-180 TCF of CBM gas.

Several companies have embarked on the exploitation works on CBM potential in Sumatra and Kalimantan, but thus far no one has been reported to invest substantial amount of fund on CBM exploration project due to unclear regulation. (godang)