Bukit Asam's South Sumatra CBM Project to Start Next Year

PT Tambang Batubara Bukit Asam Tbk expects its coal bed methane (CBM) project to start producing gas in late 2012 or early 2013. The company has drilled three wells till now.

A report in kontan.co.id said that the initial phase of the production would generate electricity up to 1 megawatt. The coal bed methane project, which is located in Tanjung Enim, South Sumatra, is estimated to produce up to 50 trillion cubic feet of gas. This could be used to produce electricity equivalent to 250 megawatts.

Bukit Asam’s stake in the project is 27.5%.