E. Java Power, Pertamina sign gas supply agreement
E. Java Power, Pertamina sign gas supply agreement
JAKARTA (JP): Private electricity company PT East Java Power
Corp. signed yesterday an agreement with state-owned oil company
Pertamina to supply natural gas to its 500 Megawatt (MW) power
plant in Pasuruan, East Java.
The agreement was signed here by Pertamina's president Faisal
Abda'oe and East Java Power's president Robert Baldwin Junior.
According to the agreement, Pertamina will supply about 30
billion cubic feet of natural gas per year to East Java's
combined cycle power plant.
The gas will be supplied from an offshore gas field 62
kilometers east of Surabaya and 16 kilometers off Madura island,
operated by Pertamina's production sharing contractor Mobil
Madura Straits Inc.
Pertamina will deliver the gas via a 60 kilometer underwater
pipeline to be constructed from the Madura gas field to the
processing plant on Kambing Island and on to East Java Power's
power plant in Pasuruan.
East Java Power is 50.1 percent owned by Enron Java Power
Corporation, an affiliate of Enron International of the United
States; 25 percent by PT Pasuruan Power, controlled by Bambang
Trihatmodjo, President Soeharto's second son; and 24.9 percent by
Prince Holdings Ltd. of Hong Kong.
East Java Power signed a power purchase agreement with state-
owned electricity company PLN in November 1996 to purchase power
from the gas-fired combined cycle power plant under a 20-year
build-operate-own scheme. PLN will buy the power at 5.76 US cents
per kilowatt hour (KWh).
The power plant, worth US$575 million, is scheduled to come on
stream in early 2000.
Mobil Madura Straits, operator of the Madura offshore gas
field, is a consortium consisting of Mobil Corporation of the
United States (69 percent) and Husky Oil International Ltd. of
Canada (31 percent).
Mobil Madura said yesterday it would invest US$300 million to
build an offshore gas rig, processing facilities on Kambing
Island and the 60-kilometer pipeline linking the gas field,
Kambing Island and East Java Power facilities.
The company said the gas field, which contained 455 billion
cubic feet of natural gas, was scheduled to start production in
2000. (jsk)