Ephindo seeks approval to sell electricity from its CBM pilot project
Thursday, August 4 2011 - 03:48 AM WIB
He said gas from the CBM pilot project cannot be sold for long period as it will only last for 2-3 years. ?Therefore, we are proposing to the government that we are allowed to sell electricity directly (to PLN). We will invest on the power plant once we got the approval, PLN will then just purchase electricity,? Sammy said, adding "this will eliminate possible future conflict in PLN investment plan for long-term power plant requirement".
Sammy said his company has ordered the power plant from GE Energy in Austria. ?Once we secure the approval, we will establish a new business entity and import the equipments,? said Sammy.
As for electricity tariff, Sammy said that his company and PLN had discussed the matter. There is a possibility that the electricity tariff would be set based on Ministerial Decree no. 32, 2009, under which the short-term electricity tariff is above the basic price, that is around Rp 900-Rp 1000 per kWh.
The basic price in East Kalimantan is at Rp 675 per kWh.
Ephindo is targeting that its CBM project in Sangatta I will start production in November this year with production target of a minimum of 6 mmscfd this year. It has the capacity to meet energy needs of a power plant with capacity of 1.5 MW.
Under the company?s plan, Ephindo plans to sell gas from the CBM Sanggata I project to Bontang. (giok)