Energy World completes power plant expansion
Monday, September 16 2013 - 06:35 AM WIB
ASX-listed firm Energy World Corporation Ltd (EWC) announced on Monday the completion of the second phase of its natural gas fired power plant expansion in Sengkang, South Sulawesi.
The two-phased expansion increases production capacity by 120MW (or more than 60%) to a total output of 31 5MW (total rated output of 357MW), and will begin contributing to EWC?s revenues with immediate effect. EWC?s Sengkang Power Plant is now the largest power generation facility by output capacity in South Sulawesi.
?As previously announced, the first phase of its recent expansion was completed in March 2013 with the installation of a new 60MW Siemens gas turbine,? the firm said in a statement filed with the Australian Stock Exchange.
Phase 2 comprised the installation of a 60MW steam turbine and two heat recovery steam generators, which have successfully completed a 96 hour NDC test period and has now reached commercial operation effective from 00:00 on Sept. 15, 2013, thus achieving completion of the expansion project.
With the completion of the expansion project, the Sengkang Power Plant now comprises two combined cycle power plant blocks: (i) Block 1 being a combined cycle gas fuel power plant consisting of three turbines (GT11 GT12 and STI8) and having a total output of 135MW (total rated output of 161.6MW); and (ii) Block 2 being a combined cycle gas fuel power plant consisting of three turbines (GT21, GT22 and ST28) and having a total output of 180MW (total rated output of 196MW).
Commenting on the completion of the power plant expansion, Stewart Elliott, EWC?s Chairman and CEO, said: This significant expansion is crucial to meeting the growing power needs of South Sulawesi, one of the fastest growing regions of the Indonesian Archipelago. The new capacity again demonstrates that EWC is an integral player in the Indonesian power market and a leading supplier of commercially viable clean electricity in Asia. Thanks to our team of talented engineers, project managers and contractors on the ground, we have completed the project within contracted time and on budget. We now look forward to moving on to the next phase of our Sengkang developments, the delivery of natural gas and LNG to Indonesia and the rest of Asia.?
The expansion of the Sengkang Power Plant began in 2010, when EWC reached an agreement with the Indonesian national power utility, PT Perusahaan Listrik Negara (Persero) (PLN), to amend its existing Power Purchase Agreement (PPA), thereby increasing the power output to be purchased by PLN from 195MW to 315MW. The PPA is a long-term take-or-pay power purchase agreement that runs to 2022, with a conventional tariff structure for Indonesian power purchase agreements which provides for the recovery of capital costs associated with the construction of the Sengkang Power Plant and associated infrastructure, operation & maintenance and fuel costs on a minimum take or pay basis.
Through its wholly owned subsidiary Energy Equity Epic (Sengkang) Pty Ltd, EWC also operates a natural gas field near the Sengkang site, which supplies feedstock gas to the power plant. EWC is also developing a modular LNG liquefaction plant, storage and loading facility in the same region.
Editing by Johannes Simbolon