Indonesia's Ephindo plans CBM Supplies to Electricity Utilities

PT Energi Pasir Hitam Indonesia (Ephindo) plans to supply coal bed methane (CBM) from Sangatta I Block in East Kalimantan to power plants in the second quarter of this year.

The company plans to drill three to four exploration wells in Sangatta I Block to find new reserves. There are currently four wells in the work area.

Evita Herawati Legowo, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, said that about 0.5 million cubic feet per day (mmscfd) of CBM from Block Sangatta will be converted into 1.5 MW of electricity for the local community, Indonesia Finance Today reported.

Another company that signed an MoU to utilize CBM for electricity is PT Medco CBM Sekayu, a subsidiary of PT Medco Energi Internasional Tbk (MEDC).

Medco has alloted about $3.2 million to $3.6 million to drill four CBM wells at Sekayu Block this year to increase methane gas production.

The company operates the block through its subsidiary, Medco CBM Sekayu, partnering with South Sumatra Energy, Inc. (SSE, Inc.). Both companies own 50 percent participating interest.