PHE to ink 2 CBM to power agreements

By Bernard Loebs

PT Pertamina Hulu Energi (PHE) and partners will later this week close the coal bed methane (CBM)-to-power deals in two CBM blocks, namely Sangatta block in East Kalimantan (with partner Ephindo) and Tanjung Enim block (with Dart Energy) in South Sumatra.

PHE President Director Salis S. Aprilian told petromindo.com that from Sangatta, around 0.5 mmscfd of gas will generate about 2 MW of electricity, while in 0.6 mmscfd from Tanjung Enim to generate 2 MW.

The gas from the blocks are sold to respective regional administration-owned companies at a price of around $7 per mmbtu before being re-sold to state owned utility firm PT Perusahaan Listrik Negara (PLN).

According to Salis, PLN buys 'back' the gas from the local firms as part of its CSR program.

Editing by Dadan Wijaksana