Giant U.S. oil company to build geothermal plant
Giant U.S. oil company to build geothermal plant
The Jakarta Post, Jakarta
ChevronTexaco Corp. the second largest U.S. energy firm, said
it had decided to invest US$128 million in Indonesia to build a
new geothermal power generating unit in West Java in a bid to
avert future electricity shortages in Java, Madura and Bali.
ChevronTexaco said in a statement that the company's local
unit, ChevronTexaco Energy Indonesia Ltd. (CTEI), would expand
the Darajat geothermal power plant by building a new 110 megawatt
unit in Darajat, Garut, West Java.
CTEI, which was formerly known as Amoseas Indonesia Inc., will
have a 95 percent stake in the project, with the remaining 5
percent held by Darajat Geothermal Indonesia. Darajat is linked
to the Tahija family.
"The new unit will help meet the electricity demands in Java,
Madura and Bali, where supply shortages are anticipated," said
George Kirkland, president ChevronTexaco Overseas Petroleum in
the statement.
Geothermal resources in Darajat are abundant, clean, renewable
and able to easily generate up to 330 megawatts of electrical
power. CTEI has built two power units, Dradjat I and II, with a
combined capacity of 145 megawatts, meaning more than half of the
area's geothermal resources remained untapped.
CTEI signed a power sales contract with state utility PT
Perusahaan Listrik Negara (PLN) and state oil and gas company PT
Pertamina earlier this year for the development of the Darajat
III plant.
In October this year, it awarded the engineering, procurement
and construction (EPC) contract to the consortium consisting of
PT Thiess Contractors Indonesia and Kanematsu Corp. Construction
of the new power unit will be completed within two years and
commercial operations are expected to begin by the third quarter
of 2006.
The new power unit is expected to be in operation for 30
years.
"Tradable United Nation's Clean Development Mechanism credits
generated by the project for Co2 emission reduction are to be
pursued for approval by appropriate Indonesian and international
authorities and could contribute significantly to the project's
economic viability, which is a significant factor in the approval
of the project," Wahyudin Yudiana, president director of
ChevronTexaco Indonesia's Business Unit, said.