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    Indonesia's Vico Plans CBM Sales to PLN

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Summary

Virginia Indonesia Company (Vico) could make $ 7.18 million from selling half a million cubic feet per day (mmscfd) of coal bed methane (CBM) to PT PLN (Persero) for a minimum of five years,

by: Shardul

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Asia/Oceania

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Indonesia's Vico Plans CBM Sales to PLN

Virginia Indonesia Company (Vico) could make $ 7.18 million from selling half a million cubic feet per day (mmscfd) of coal bed methane (CBM) to PT PLN (Persero) for a minimum of five years, Indonesia Finance Today reported.

CBM supply will be available for PLN power plants by April 2012. The gas will be used to operate the Sanga-Sanga mini-gas power plants.

By using CBM, PLN could reduce fuel oil consumption of about 5.1 million liters per year. It can also cut costs as CBM is cheaper than fuel oil.

The gas purchase agreement between PLN and Vico is the first CBM sales contract in Indonesia.

Vico’s CBM reserves account for one third of the total national CBM reserves of 400 trillion cubic feet (tcf). This is greater than Indonesia’s natural gas reserve which amounts to 200 tcf.

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