Citacontrac offers to invest in $42 million power plant in E. Kalimantan
Monday, February 16 2004 - 01:17 AM WIB
The market for electricity in East Kalimantan is attractive because the consumption is on the rise and the supply is limited, Citacontrac?s staff expert Cahya Heru said.
?The gas-fired power plant was selected precisely because gas is more cheaper than the diesel power plant, which uses diesel oil. Moreover, it (gas) is friendly to the environment,? Cahya said on Sunday in Samarinda.
According to Cahya, the electricity generated from gas can be sold to consumers at a cheaper price.
Most of the electricity generated by state-owned electricity company PT Perusahaan Listrik Negara (PLN) in East Kalimantan is from diesel power plant with a production cost of Rp 700 to Rp 900 per kilowatt per hour (kWh). And the electricity sold to the public at a rate of Rp 550/kWh, he said.
?The production cost of the electricity from the gas-fired power plant can be reduced to Rp 400. Then if you sell at a rate of Rp 400, it will be profitable," Cahyo said.
As far as the gas supply is concerned, Cahya explained that his company has already made an agreement with PT Sembrani Persada Oil, which is capable of supplying 20 million British thermal unit (MMBTU) per day for 15 years. (*)