KEPCO to build power plant in RI

KEPCO to build power plant in RI

The Jakarta Post, Jakarta

South Korean power company Korean Electric Power Corporation
(KEPCO) is interested in building a power plant in West Java,
given the high power demand from businesses in the province.

President of state electricity company PLN Eddie Widiono said
KEPCO was likely to build a 2 x 500-megawatt (MW) power plant in
the province.

"It's not definite yet ... but the size is around 2 x 500 MW
because we need a high-capacity power plant," Eddie said on
Monday following a ceremony held to inaugurate a PLN service
center at Mampang, South Jakarta.

"The company has held talks with PLN but we don't know yet how
great the investment will be," he said, adding that the planned
power plant was expected to be in operation by 2007.

Eddie did not provide details about the financing scheme to
build the plant but said funds would include loans from Japan.

Previously, Minister of Energy and Mineral Resources Purnomo
Yusgiantoro said KEPCO wished to invest in the power sector as
well as buy one million tons of liquefied natural gas (LNG) from
Indonesia.

"Apart from investment in the power sector, we have also made
an offer to the company to buy LNG from Indonesia," Purnomo said
recently.

In return, the minister said KEPCO would ask PLN to buy its
power.

Purnomo asserted the government would make sure that the power
price bought from KEPCO would not exceed that of LNG purchase by
KEPCO from Indonesia to avoid "loses."

The government has actively been approaching South Korean
companies, which are among Indonesia's traditional LNG buyers, to
extend or secure a new LNG contract.

Some of the LNG contracts with South Korean buyers are due to
expire in 2007.

Recently, Indonesia's third LNG plant, Tangguh, won a tender
to supply LNG to South Korea's power firm SK Corp. and steel
producer POSCO.

Tangguh, which is located in Papua province, will supply both
companies with an average of 1.1 to 1.5 million tons of LNG per
annum for 20 years.