Indonesia to Produce LNG from Coal

The directorate general is finishing the CBM development guide in 100 days.

Vivanews, Heri Susanto, Ferial, RABU, 25 NOVEMBER 2009, 11:45 WIB

Coal mining (www.warwick.ac.uk)

VIVAnews – The government is planning to develop liquid natural gas (LNG) from coal bed methane (CBM), and if succeeded Indonesia will be the first country to produce LNG from CBM.

Director General for Oil and Gas Evita Herawati Legowo said that the development is aimed to create an easier gas distribution to the domestic consumers.

“We are planning to turn gas from CBM to LNG,: Legowo said in Jakarta on Wednesday, Nov. 25.

She said the directorate general is finishing the CBM development guide in 100 days to accelerate the development and realize the plan.

“If the plant of development (PoD) has yet to be established, the gas could not be sold. Now we are thinking ways to utilize the gas despite the absence of PoD,” she said.

Legowo explained that the government is planning to tone down the production sharing contract (PSC) related to the PoD for the CBM development, which is done, among others, by changing the production sharing system.

Based on the Energy and Mineral Resources Department, the total potential reserve of CBM in Indonesia reaches 453.30 TCF.

Translated by: Ariyantri E. Tarman