Indonesian utilities to generate CBM electricity for Sangatta, Muaera Enim

Indonsia's PLN and PHE will team up to develop coal bed methane for electricity in Sangatta, East Kalimantan, and Muaera Enim, South Sumatra.

PT Perusahaan Listrik Negara or PLN expects production of Sangatta to reach between 0.1 million standard cubic feet per day and Muara Enim 0.5 mmscfd, said Suryadi Mardjoeki of the company’s oil-based fuels and gas division.

“Now the development of gas has reached the phase of de-watering. We will distribute the power to areas near the block as long as the gas supply is constant,” Suryadi added.

PLN; PHE or PT Pertamina Hulu Energi, a subsidiary of state oil and gas firm PT Pertamina; and upstream oil and gas regulator BPMigas are currently discussing terms and conditions for gas sales and purchase, said PHE president director Salis S. Aprilian in Jakarta on Monday.

“PLN will sell the gas produced from a CBM block and Pertamina Gas will channel the gas to PLN. The transportation fee will depend on the distance between the block and the power plant,” he added.

During the current development phase, PHE did not use the gas but flared it until the expected amount of production was reached, Salis said.

PLN has set aside US$2 million to set up several small gas engines with capacity of 500 kilowatts and 2 megawatts, Suryadi of PLN said.

PHE is currently developing CBM in 11 locations across the country, but only four have begun production.

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