PGN, Sojitz plan to develop CBM in S. Sumatra
Thursday, December 7 2006 - 01:16 AM WIB
The government will push state-owned gas distribution company PT Perusahaan Gas Negara (PGN) to work with Sojitz Corporation to develop coal bed methane (CBM) in South Sumatra, Bisnis Indonesia reported Thursday.
Under a plan, the Ministry of Energy and Mineral Resources is scheduled to sign a memorandum of understanding (MoU) with Sojitz today (Thursday) in regard to conducting a study on various areas to develop CBM.
The Energy and Mineral Resources Ministry?s research and development agency?s chief Neny Sri Utami said after the signing of the MoU, her office will push PGN to work with Sojitz for the commercialization of several CBM fields.
Earlier, PGN and three foreign companies, including Santos, Aero and Global will establish a consortium to jointly develop CBM in South Sumatra and Kalimantan.
Indonesia's CBM gas is estimated to reach around 453 trillion cubic feet(*)