Balikpapan teams up with Japan?s IHI to build combined cycle plant
Friday, August 18 2006 - 03:00 AM WIB
The mayoralty will team up with Ishikawajima-Harima Heavy Industries Co (IHI), which has committed to investing some Rp 600 billion in the project, according to mayor Imdaad Hamid.
He said the negotiation on the price of gas supplies for the planned power plant was still in progress, while the mayoralty expected the central government to issue a license for the development of the project by October this year.
?Under the memorandum of understanding (with IHI), gas will start folowing to the power plant in the fourth quarter of 2007. We will receive gas supply of 20 million metric standard cubic feet per day (MMSCFD) from Total E&P Indonesie,? said Imdaad.
French firm Total is the largest gas producer in the province.
According to Imdaad, if the construction of the plant can not be completed in 2007, the city might face problems in holding the PON national sports event in 2008. ?How can we install captive power generators in sports halls or other PON supporting facilities when there is no sufficient electric power?,? he asked.
Balikpapan, one of the cities that will host the PON sports event, is currently having a deficit in power supply of 80 megawatt.(*)