The first Coal Bed Methane production is targeted to happen in second quarter of 2011. The production is expected to come from West Sangatta I working area operated by West Sangatta CBM Ltd.
The Indonesian Executive Agency for Oil and Gas Upstream (BP Migas) target that by May 2011 at least 1 Million standard cubic feet per day (MMSCFD) will have been produced which can generate around 2.5 Mw of electricity.
According to BP Migas Operational Control Deputy, Budi Indiato, West Sangatta has completed drilling 3 wells in 2010 and has started to drill the fourth well since January 2011.
In parallel, discussions have also been held with local state owned corporation for the possibility of working together selling the gas produced from the wells.
Since its development in 2008 the Coal Bed Methane exploration have continue to expand. This year there are five contractor of Coal Bed Methane working area predicted to be producing gas. Other than West Sangatta, those contractors are CBM Sekayu working area operated by Medco Energy International, Tanjung Enim by Arrow PTE, Bariot Banjar by Indobarambai and Sanga-sanga operated by Vico.
Each of these working areas is estimated to produce 1 MMSCFD except for Sanga-sanga which will produce 1.5 MMSCFD. “The rest of the contractor will hopefully start producing by the third quarter of 2011” says Budi.
The total production of 5.5 MMSCFD or equivalent to 13.75 Mw will be turned into electricity and made available to consumer around the working areas.
In the past two years, the Indonesian Government has been heavily promoting CBM. Indonesia’s CBM potential is one of the five largest in the world. Its resources reach 453.3 trillion cubic feet (TCF) spread over in 11 basins.
The government is actively offer new working area. Having had a 23 CBM working area concession in 2011, the government plans to offer another 13 new CBM area concession as well as 10 CBM cooperation contracts.
As an initial step, gas from the CBM is projected to meet the needs of small-scale power in 2011. According to the government work plan, CBM production is expected to reach 500 MMSCFD in 2015, 1,000 MMSCFD in 2020, and 1,500 MMSCFD by the year 2025.