Sengkang to build gas power plant
Sengkang to build gas power plant
JAKARTA (JP): PT Energi Sengkang, a joint venture between PT
Trihasra Sarana Jaya Purnama and Energy Equity Asia Power Ltd. of
Australia, will build and operate a combined-cycle power station
in Sengkang, South Sulawesi, with an investment of US$176
million.
"The planned power station will start operation in 1998 with a
capacity of 135 megawatts," PT Trihasra Sarana Jaya Purnama's
president, Indradjid Subardjo, announced yesterday after signing
an agreement with state electricity company PLN.
Under yesterday's agreement, PLN will buy electricity to be
produced by Energi Sengkang at 6.7 U.S. cents per kilowatt-hour
(kWh). The price will comprise the cost of power generation at
6.5 U.S. cents per kWh and the transmission cost of 0.15 U.S.
cents per kWh.
"The power construction will start soon to catch up with our
schedule," he said, adding that it is the first integrated
project involving the private sector company as both supplier of
natural gas and generator of electricity.
Indradjid pointed out that the power station, which is the
first electricity project involving an Australian company, will
be built under a build, operate and own system for 20 years.
He noted that his company will also construct a 30-km
transmission network from its natural gas power plant in Sengkang
to the nearest PLN electricity station in Soppeng, South
Sulawesi.
He added that during the 20-year contract period, the price of
gas to be used for the power station is set at US$2.85 per
million British thermal units.
According to Indradjid, Minister of Mines and Energy I.B.
Sudjana approved the gas price in February.
At yesterday's signing ceremony, Sudjana acknowledged that the
government faces financial problems in developing energy
resources for its energy diversification programs.
"As the government is hampered by a financial limitation in
developing electricity projects, we call on the private sector to
increase participation in energy development," he said. (13)