VICO says E. Kalimantan CBM to be turned into LNG in 2012

East Kalimantan gas producer and CBM explorer VICO Indonesia said it would start flowing CBM gas in 2012, the Company?s CEO said.

CEO Craig Steward told IndoCBM conference in Jakarta on Wednesday that the CBM gas would be flowed to Bontang LNG plant to be turned into LNG.

He did not give detail about the volume.

Vico has been granted last year CBM concession overlapping its current Sanga-Sanga conventional gas block, which production is dwindling due to reserves depletion.

?The Sanga-Sanga CBM will become world?s first LNG from CBM gas,? he said, adding that CBM gas from the block will make up dwindling supply of conventional gas to Bontang LNG plant.

The Sanga-Sanga PSC is jointly operated by UK giant BP Plc and Italian firm Eni SpA.

Former CEO Chris Phillips said in an interview last year that the block might be able to produce 500-600 MMCFD of CBM to feed Bontang LNG plant in 2016.

Another company official earlier said that the block might contain 10TCF of recoverable CBM. (bernard)