PGN, Santos in CBM deal

State gas distribution firm PT Perusahaan Gas Negara Tbk. (PGN) and Australian energy company, Santos Limited have recently signed in Adelaide an MoU on the study of the development and extraction of Coal Bed Methane (CBM), PGN said in a release received Thursday.

Under the MoU, both parties will work together in studying the technological, commercial and legal aspect of CBM utilization in Indonesia. The two companies will also facilitate the establishment of a joint study team to evaluate CBM?s potential in Indonesia. The team will consist of Directorate General of Oil and Gas (MIGAS), academic institutions, regulatory body and industrial sectors.

CBM in Indonesia has the potential to be located in 12 basins and has an estimated resource size of up to 300 trillion cubic feet. CBM gas has similar characteristics to those of the natural gas, and thus can be transported through the pipeline grid.

Santos has significant experience in the exploration, marketing, development and production of CBM in Australia. The company has extensive CBM activity centered around the Fairview, Scotia and Roma fields in the Bowen and Surat Basins, located in the state of Queensland, in Australia. Today the company produces about 30% of Australia? s CBM. (godang)