PGN to develop coal bed methane

State-owned gas distribution company PT Perusahaan Gas Negara (PGN) will develop coal bed methane amid reports that Indonesia's natural gas reserves declined significantly in the next few years.

Tempointeraktif.com quoted PGN director Adil Abas saying Indonesia's coal bed methane (CBM) reserves are huge with 182 trillion cubic feet (TCF) in East Kalimantan and 183 TCF in South Sumatra.

Coalbed Methane (CBM) is now a major source of gas production in the United States and is gaining importance in Australia, China, Indonesia and Europe. CBM reserves in the United States are estimated at some 450 Tscf. In Australia, CBM resources exceed 300 Tscf, while China has a resource potential greater than the United States and Australia combined. Recent advances in well design and production technology offer scope to significantly increase the proportion of gas contained in coal that can be commercialised. However, a different mindset to that applied to conventional gas development is necessary for both producers and customers if the full potential of this vast resource is to be realised.

Natural gas may be produced from wells in deep coal seams by pumping out water to reduce formation pressure. In the early 1990s in the USA there were about 6,000 coalbed methane (CBM) wells producing over a billion cubic feet per day, and CBM reserves represent a significant proportion of total onshore gas. The technology is now being disseminated worldwide.

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