South Korea, Indonesia Agree to Work Together on CBM Projects

South Korea and Indonesia on Monday agreed to work together on coalbed methane projects, a floating LNG terminal, on onshore liquefaction facility and a $2.8 billion synthetic natural gas plant in the Southeast Asian nation, according to a report by Platts.

The two countries agreed to expand cooperation in the whole gas value chain, a statement by the Ministry of Trade, Industry and Energy said, adds Platts.

"On the upstream front, South Korea and Indonesia discussed joint projects to develop coalbed methane gas in Indonesia," the statement said.

Quoting from the statement Platts says that in the midstream sector, the two countries are eyeing joint projects to build a floating LNG terminal, small LNG carriers, an onshore liquefaction facility in Indonesia.

In the downstream sector, they discussed a proposed investment by South Korea's SK E&S in Indonesia's city gas project, the statement said. SK E&S also signed a memorandum of understanding with Pertamina on joint projects for power generation and LNG infrastructure.

The agreements were signed during the annual Korea-Indonesia Energy Forum held on the island of Jeju in South Korea.