EWC, PLN renegotiate PPA for Sengkang power plant

ASX-listed energy firm Energy World Corporation Limited (EWC) said Friday that it has commenced negotiations with state electricity firm PT Perusahaan Listrik Negara (PLN) to amend the Power Purchase Agreement (PPA.

The renegotiation comes as the firm plans to expand the capacity of its power plant in Sengkang, South Sulawesi to 315 MW from 195 MW.

?On 31 July 2008, EWC received approval from the Minister of Energy and Mineral Resources to the increase in the output power from 195 MW to 315 MW,? the company said.

Debt financing for the expansion was currently "under discussion", it said.

The project involves the construction of a combined cycle plant, comprising one 60-65MW Siemens gas turbine and generator unit, one heat recovery steam generating unit, one 60-65MW steam turbine and generator unit and associated plant and infrastructure. The additional 120MW capacity will require the gas supply to the Sengkang Power Plant to increase to 67 MMscf/d.

The 195 MW Sengkang power plant is comprised of a 135 MW combined cycle plant and 60 MW open cycle power plant. It delivers power to the South Sulawesi electricity grid operated by PLN. (denny)