Ephindo delays electricity sales to PLN
Friday, January 13 2012 - 03:24 AM WIB
PT Energi Pasir Hitam Indonesia (Ephindo) has delayed its plan to sell electricity from its coal bed methane-fired power plant in West Sanggata, East Kalimantan to state owned electricity company PLN.
The company was initially scheduled to begin to sell electricity to PLN early 2012 but it was later delayed because a separator and a pump for the power distribution could not function as expected due to technical problems.
?We hope the sales could be realized in second quarter, around March or April,? Ephindo?s CEO Sammy Hamzah told Petromindo.com
Sammy acknowledged that according to the existing contract, Ephindo could not sell electricity directly to PLN. But he said that such restriction would not be a problem as Ephindo may sell it through a local state owned company or BUMD.
The power plant, which will have a capacity of 1.5 megawatt, will use methane gas as its fuel. At present Ephindo produces 3 million standard cubic feet per day (MMSCFD) from two CMB wells in the West Sanggata block.
This year, the company plans to drill four more wells with total investment between $6 million and $10 million, or about $1.5 million for each well. Ephindo also operates Malaka Mendung and Kutai II CBM blocks which are now under feasibility study.
Editing by Roffie Kurniawan