Govt to use "shale" gas on trial basis in 2010Wednesday,...

Govt to use "shale" gas on trial basis in 2010
Wednesday, December 16, 2009 10:16 WIB | Economic & Business | | Viewed 245 time(s)
Jakarta (ANTARA News) - The government is to conduct experiments in the use of gas extracted from "shale" or otherwise also called "unconventional gas" beginning in 2010, an energy official said.

Shale gas, like CBM (local bed methane) which is imbedded in the core of coal, is considered the elternative energy of the future, Edy Hermantoro, oil and gas upstream director at the Ministry of Energy and Mineral Resources, said here Tuesday.

Speaking at a seminar themed "Energy Outlook: Quo Vadis Production Sharing Contract Extension" organized by ANTARA News Agency, he said shale gas was gas trapped in shale rocks.

He said preliminary studies had shown Indonesia had quite sizable shale gas reserves in its soil but the exact volume had yet to be measured.

In the USA, according to Edy, shale gas began to be developed in 2000, Now it was being produced in large quantities, namely up to 16,000 MMSCFD per day.

The investment required to drill a shale gas well was almost the same as that for a CBM well, namely between 500 and one million US dollars per well.

The government was putting high hopes on shale gas and CBM development which, if successful, would end the country`s dependence on petroleum and natural gas.

The government would also prepare regulations on shale gas development activity whereas for CBM development, the government had already set itself the target of beginning production in 2011 with the output to be used for electricity generation.

"There are now five CBM development locations scheduled to begin production in 2011," he said. One of the locastions was in the Sekayu Block in South Sumatra.

CBM production was projected to reach 500 MMSCFD per day by 2015, 900 MMSCFD by 2020, and 1,500 MMSCFD by 2025.

The government had already signed 20 work contracts to develop CBM with known reserves to be found in 11 basins holding potential reserves of 453,3 trillion cubic feet.(*)


http://www.antara.co.id/en/news/1260933404/govt-to-use-shale-gas-on-trial-basis-in-2010


Nice to have our gov get behind CTP. Bring on the oil and the helium!