US Interested in Developing Shale Gas in Indonesia
Tuesday, 07 February, 2012 | 17:23 WIB

TEMPO Interactive, Jakarta:The US government intends to cooperate with the Indonesian government to develop shale gas or natural gas found in shallow rocks.

US Deputy Energy Minister David Sandalow said the development would require time and high technology.

Sandalow said that 5 years ago, the potential of shale gas was not understood. Today, shale gas contributes 30 percent of the US’ gas production. “It’s projected to increase to 49 percent in 2035,” he said.

The process to convert shale rocks to gas takes five years. Based on the Energy and Mineral Resources Ministry’s data, Indonesia has 570 trillion cubic feet (TCF) of shale gas.

Oil and gas director-general Evita Legowo said the meeting yesterday was the first stage and a chance for Indonesia to learn about the success of the US’ shale gas management. The government is currently studying the possibility and guaranteed up to 100 percent cost recovery so long as the regulation is fulfilled.

GUSTIDHA BUDIARTIE