Indonesia, which largely depends on fossil fuels for energy security, is set to launch its first power plant using unconventional gas coal bed methane (CBM) reserves this year.
Upstream oil and gas regulatory special task force SKKMigas chief Hadi Prasetyo said on Wednesday Virginia Indonesia Co. (VICO), which operates Sanga-Sanga block, will supply CBM to a gas-fired power plant in Sangatta, East Kalimantan.
The Sangatta power plant is owned by utility firm PT PLN. Construction was completed at the end of 2012.
VICO, a joint venture between British giant BP and Italy’s ENI, will supply half a million metric standard cubic feet per day (mmscfd) of CBM from 15 wells on the block.
The plant is able to generate between two and four megawatts of power.