Energi Nusantara signs HOAs on power supply
Friday, August 11 2017 - 07:01 AM WIB
Private power company PT Energi Nusantara Merah Putih (ENMP) signed on Thursday heads of agreements (HOAs) with eight industrial tenants at the Bantaeng Industrial Zone over future power supply from a 600 MW combined-cycle power plant (PLTGU) to be developed by the former.
ENMP President Director Westana Wiraatmadja said to Petromindo.com that the power purchase agreements (PPAs) with the eight companies are expected to be signed by the end of this year.
?We?re currently still negotiating the price (of electricity). The price may be slightly higher than electricity from PLN (state-owned power firm), but we?re committed to maintain supply stability for industries,? he explained.
As has been previously reported, ENMP signed in February of this year MoU with China?s Sinland Development Pte Ltd to develop the PLTGU project, which will be integrated with a floating storage and regasification unit to be developed by ENMP?s subsidiary PT Pasifik Agra Energi.
Westana said that the estimated US$980 million power plant project will be 70 percent funded by bank loans. Financial close is expected to be reached in 2018, and the project is targeted to be completed in 2021.
The power plant will require gas at a volume 130-150 mmscfd, Westana said, but it has yet to be decided whether the gas will come from domestic sources or import.
The eight companies which signed the HOAs on Thursday are PT Huadi Nickel Alloy, PT Titan Mineral Utama, PT Bantaeng Central Asia Steel, PT Sinar Deli Bantaeng, PT Intim Perkasa Energi, PT Multi Kilang Pratama, PT Sergion Techno, and Inensunan Mills Indonesia, most of which are engaged in nickel industry.
Editing by Reiner Simanjuntak