PGN to tap coalbed methane reserves

State gas distributor PT Perusahaan Gas Negara (PGN) will develop coalbed methane (CBM) to replace natural gas as an alternative energy source, the Koran Tempo reported on Wednesday.

PGN director of development Adil Abas said the CBM reserves in Indonesia are huge: 182 trillion cubic feet(tcf) in East Kalimantan and 183 tcf in South Sumatra.

PGN will invite local governments and mining operators to produce CBM. Though at present the price of CBM is much higher than the gas, but CBM price will be cheaper than gas in the next 10 years. Based on the research, CBM reserves are very huge and can be converted them into as alternative energy sources. (*)