Indonesian power company Perusahaan Listrik Negara (PLN) has today signed a five-year deal with BP and Italian firm Eni to buy coal-bed methane gas.

State-owned PLN will buy 500,000 cubic feet (14,000 m3) a day from BP/Eni joint venture Vico Indonesia.

The gas will generate electricity at PLN’s 3 MW power plant in East Kalimantan and company president Nur Pamudji said deliveries would begin in December.

Indonesia is looking to coal-bed methane gas and shale as a means of meeting its increasing energy demands.

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