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Indonesia expects to produce a small amount of coal-bed methane for the first time next year, which will used to generate electricity, an Energy Ministry official said on Wednesday.

CBM is natural gas trapped in seams of coal that may require large quantities of high-salinity water in extraction, but Indonesia is hoping to tap alternative sources of energy to meet rising power demand and cut consumption of expensive crude oil.

“We expect the first combined total production will be about 9.2 million cubic feet per day,” Evita Legowo, the ministry’s director general of oil and gas, told reporters. “We will use this volume to feed small capacity power plants near the production areas.”

The supply will come from areas in South Sumatra and East Kalimantan, including CBM fields operated by Indonesian energy firm PT Medco Energi International and Vico Indonesia.

Vico Indonesia, jointly owned by BP and Italy’s Eni, is exploring CBM potential in Sanga-Sanga, East Kalimantan, which is believed to have methane resources of between 10 trillion to 15 trillion cubic feet.

Vico already produces natural gas in the area, which is supplied to Bontang liquefied natural gas plant.

“We also expect the [coalbed] methane gas output from East Kalimantan to feed Bontang LNG plant by 2012,” Legowo said.

Indonesia hopes combined total production of CBM will reach 100 million cubic feet per day by 2015 and 500 million cubic feet per day by 2020.