PGN, Musi Rawas sign MoU on CBM exploitation

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

"PGN will study possibility to exploit CBM in the regency, especially the reserves that are close to PGN?s pipeline,? CEO WMP Simandjuntak said.

South Sumatra is believed to have potential of 185 TCF of CBM gas.

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