Pertamina to Expand its CBM Operations in Indonesia

Indonesia’s state owned firm Pertamina plans to develop more coal-bed methane projects in a bid to meet growing energy demand in the country.

Jakarta Globe has reported that Pertamina Hulu Energi (PHE), a unit Pertamina, expects to start generating electricity from its Tanjung Enim coal-bed methane assets in South Sumatra in December.  It will be PHE’s first CBM project and the country’s second after the Sanga Sanga field in East Kalimantan, run by Virginia Indonesia Company. 

“The gas will generate around 2 megawatts of electricity, not much, but enough to bring power for two or three villages near the site,” said Salis Aprilian, chief executive of PHE, Jakarta Globe reported.

The company plans to produce 500 million meter standard cubic feet per day (MMSCFD) of coal bed methane gas by 2025. “We are looking to develop it further as CBM is more durable than other energy sources,” Salis told the newspaper. 

PHE has 12 CBM working areas — eight located in South Sumatra, two in South Kalimantan and two in East Kalimantan. The company plans to spend around $50 million through 2015 to further develop its CBM assets.