PTBA in talks with potential buyers of gas from CBM project

By Godang Sitompul

State owned coal mining company PT Bukit Asam (PTBA) is currently in talks with a number of potential buyers of gas to be produced from the company?s coalbed methane project in Muara Enim, South Sumatra.

The potential buyers being approached by PTBA include gas distribution firm PGN, electricity firm PLN, and oil and gas firm Pertamina.

?If result from the Muara Enim CBM block is good, it is hoped that production can start this year. We?re currently in talks with potential buyers among of others PLN, PGN and also Pertamina,? PTBA President Director Milawarma told Petromindo.com on Tuesday.

The gas will be transferred by PGN through the South Sumatra to West Java pipeline. Meanwhile, PLN will use the gas to fuel its power plant in South Sumatra. Pertamina, PTBA?s partner in the CBM project, has also expressed interest to buy the output. Another partner in the project is Dart Energy.

Separately, Milwarma said that PTBA is also interested in developing shale gas potential in Indonesia, but the problem is that there is not a single reference on shale gas project in Indonesia.

Editing by Reiner Simanjuntak