Coal bed methane (CBM) is a form of natural gas trapped in coal seams. CBM technology has been proven and well implemented in US, Australia and China.
Indonesia's potential reserves of CBM are estimated at approximately 450 TCF. The reserves mostly situated in South Sumatra and East Kalimantan.
PGN is promoting CBM development in Indonesia with objectives mainly to enhance the natural gas supply and maintain security of supply of natural gas for The Indonesian Integrated Gas Transmission and Distribution System - IIGTDS.
For successful CBM development, PGN has collaborated with all key players such as CBM operators who have expertise and experiences on coal mining industries and local government who hold authority in coal mining sector. The corporate involvement in CBM development is preferred in South Sumatera, considering the existence of PGN's transmission pipelines in the same area.
