Construction of Bontang power plant faces cancellation

The plan of East Kalimantan's Bontang administration to build a gas-fired power plant might be cancelled because none of gas producers in the province have agreed to supply gas to the planned power plant at a subsidized price.

"If no (gas price) agreement is made until the end of this year, it is almost certain that the plan to construct the gas power plant would be cancelled," said Bontang mayor Andy Sofyan Hasdam.

He said that the municipality gave the local legislative council until December to seek for the possible subsidy from upstream authority BP Migas or gas producers for the planned power plant.

The Bontang municipality plans to build a gas power plant in cooperation with a local company to cope with the shortage of the electricity supply in the area. The local administration hopes that the new power plant will be able to commence commercial operation next year. (*)