A memorandum of understanding (MoU) on the coal methane gas supply was signed by president director of PT Medco CBM Sekayu Pudjo Suwarna and president director of PDPDE Caca Isa Saleh in the presence of Energy and Mineral Resources Minister Jero Wacik, a PT Medco press statement said.
Under the MoU, Medco would supply the gas to PDPDE over a period of five years at a constant rate of 200 mscfd directly from Medco`s CBM SE-2 well in the Sekayu GMB Block. PDPDE would use the gas to meet the local community`s need for electricity.
Medco began using coal methane gas to generate electricity at its coal methane gas collection site in its Sekayu Block located in Musi Banyuasin district, South Sumatra.
"As the potential was quite large, it was possible to use the coal methane gas from the Sekayu Block to meet the local community`s need for electricity," the statement said.
Medo was now planning to drill four coal methane gas wells in the Sekayu Block in 2012. In the block, Medco was operating in partnership with South Sumatera Energy Inc under a 50:50 profit arrangement.
Medco has cooperation contracts to produce coal methane gas in three blocks in South Sumatra , namely the Sekayu, Lematang and Muralim blocks. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2011
