Energy Equity still reluctant to sell its gas to Medco
Tuesday, January 4 2005 - 03:22 AM WIB
PT Energy Equity Sengkang (EES) is still reluctant to sell part of its gas deposits in its Sengkang gas field in South Sulawesi to Medco and its partner Roll Royce, which will build a power plant in the area, Investor Daily reported on Tuesday.
Rachmadi Danoeatmadja, the general manager of state electricity company PLN's branch in South Sulawesi, said in Makassar on Monday that EES had turned down the offer of Medco and Roll Royce to develop part of its gas potential in the Sengkang field.
"Although EES has not yet agreed to sell its gas deposit, PLN will continue to support the plan of Medco and Roll Royce to build a power plant in the area," he said.
EES uses the gas from the Sengkang gas field to support the operation of its 135 MW power plant in the province. The company plans to increase the capacity of the power plant by another 65 MW later this year.
Rachmadi said that the existing gas deposits in the Sengkang field is still capable to supply the gas needs of a 100 MW power plant despite the increase in the capacity of EES's power plant.
As earlier reported, Medco and Roll Royce plan to build a power plant in South Sulawesi to take the advantage of the growing electricity demand in the province. The two companies have offered EES to develop part of its Sengkang oil field to produce gas for its power plant.
In addition, Medco and Roll Royce have also offered to buy the electricity produced by EES. But the latter has yet to give a positive response to the offer. (*)