gas hydrate - CCOP

CBM Development in Indonesia
Hadi Purnomo
Research and Development Centre for Oil and Gas Technology
“LEMIGAS”, Indonesia
ABSTRACT: In the last decade, gas demand in Indonesia and its surrounding
region has increased significantly as a result of the growing energy needs of
newly developed industries. However, natural gas reserves are limited and there
have been few discoveries of significant new reserves. Thus there is a need to
develop alternative gas sources to meet the increasing demand. One of the most
prospective alternative gas sources in Indonesia is Coalbed Methane.
Recent studies have identified approximately 450 TCF of prospective CBM
resources within eleven onshore coal basins in Indonesia including the South
Sumatra, Kutai and Barito Basina. The potential of CBM, therefore, is clearly
promising for increasing national gas reserves in the near future and the
development of CBM should bring great economic, social and ecological benefits.
The Government of Indonesia (GOI) supports the development of CBM and has
initiated the first pilot project for CBM exploration in the Rambutan Field (South
Sumatera). The aim is to establish CBM as a clean, environmentally safe energy
source that can be developed primarily to fulfill domestic markets. The CBM pilot
project will be completed by the end of year 2007.
If the exploration is successful, the first contract for CBM development is expected
to be signed in year 2009 and the production target for CBM of 1 - 1.5 BSCFD,
representing 1 - 2% of the total energy consumption of Indonesia, is expected to be
reached in year 2025.
In order to support the growth of CBM business in Indonesia, the government of
Indonesia has issued regulations for CBM development and the contractual terms
and conditions for CBM Development are now being formulated and for issue in the
near future.
INTRODUCTION
Energy plays an important role in many aspects of human life and in achieving national
development goals. The availability of energy, in term of sufficient quantity and acceptable
quality at affordable prices, stimulates many economic activities. As a developing country,
with an increasing population, Indonesia’s energy demands have increased rapidly, growing
by an average of 7% per year.
Recently, about 54% of Indonesia’s energy is derived from oil, with the remainder from gas
(27%), coal (14%) and other resources (5%). Although the demand for fossil fuel remains
high, the reserves of fossil fuel are limited. Thus the need to restructure Indonesia’s domestic
energy strategy in order to cope with the rapid growth in consumption poses a real and urgent
challenge for the government. There is a dire need to diversify and increase the use of
alternative and renewable energy resources in order to reduce the reliance on oil.
New Energy Resources in the CCOP Region - Gas Hydrates and Coalbed Methane 143