Coal Bed Methane Contract Signed
Thursday, 19 April, 2012 | 14:50 WIB

TEMPO Interactive, Jakarta:The government has signed eight deals for the development of coal bed methane (CBM) blocks with an investment value of US39.4 million. Evita Herawati Legowo, Energy Ministry’s director-general of Oil and Gas, said the investment value was allocated for a three-year exploration. In addition to the commitment to investments, the government also received a bonus contract worth Rp8 million.

Evita said the government is still experimenting in producing coal bed methane and converting it into a new energy. However, the government still set the production target at 500 million standard cubic feet per day in 2015. The production of methane gas, despite its small amount, will be able to contribute a significant source of energy to generate power plants. “Some 0.3 million metric standard cubic feet per day [MMSCFD of methane gas] can generate 1 megawatt of electricity,” said Evita on Wednesday.

Contrary to conventional gas production, production of coal bed methane can begin since exploration stages. In the process, the gas found between coal beds only needs deep watering techniques to produce the desired gas.

GUSTIDHA BUDIARTIE