CBM Asia Signs MoU with Multinational Gas Company

- September 26th, 2013

CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) signed a non-binding Memorandum of Understanding (MoU) with a Multinational Gas Company (MGC) to conduct a technical and market study of a CBM-to-LNG facility, with a potential capacity of up to 50 MMcf/d in South Kalimantan, Indonesia.

CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) signed a non-binding Memorandum of Understanding (MoU) with a Multinational Gas Company (MGC) to conduct a technical and market study of a CBM-to-LNG facility, with a potential capacity of up to 50 MMcf/d in South Kalimantan, Indonesia.

As quoted in the press release:

As specified under the MoU CBM Asia’s responsibilities are;

  • To conduct a commercial analysis on the CBM development strategy required to meet the proposed LNG facility capacity.
  • To produce a technical study to determine gas production schedule, reserve certification and natural gas delivery points.

MGC’s responsibilities are;

  • To conduct market analysis on the demand for LNG.
  • To undertake infrastructure study on construction of the LNG facility(s) and related logistical groundwork.

Each party is responsible for its own costs in relation to the Study.

CBM Asia Development Corp. President and CEO, Alan Charuk, said:

We are very pleased to establish a relationship with MGC which has an extensive presence in the global LNG business including Asia/Australia. Furthermore, interest in South Kalimantan underscores our belief of the potential role the region’s CBM resources will play in Indonesia’s future energy requirements. Indonesia’s natural gas production has fallen over the past three years as aging conventional fields mature whereas Indonesia’s economy continues to steadily grow pushing gas demand ever higher. CBM will help to bridge that gap and also help reduce energy bills by replacing high cost diesel (USD25/Mcf) currently used in the power generation and the coal mining industries. From a development perspective the potential establishment of a medium-scale LNG facility with capacity of up to 50 MMcf/d provides the crucial mid-development step beyond early-stage power generation towards development of new pipelines and/or large scale LNG facilities required for full-scale development of the Barito Basin’s vast CBM potential.

Click here to read the CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) press release

See this press release on Marketwire
Click here to see the CBM Asia Development Corp. (TSXV:TCF,US:CBMDF,FWB:IY2) profile

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