EWC, PLN waits for approval of power purchasing deal

State owned electricity firm PT Perusahaan Listrik Negara (PLN) is waiting for approval from oil and gas upsstream sector regulator BPMIGAS of the power purchasing agreement it has reached with Australian firm Energy World Corporation (EWC).

"There isn't any approval yet. We are still waiting for it," Nur Pamudji, PLN's primary energy director, said on Wednesday.

PLN has agreed to purchase additional power from the Sengkang combined cycle power plant in South Sulawesi owned by EWC's subsidiary PT Sengkang Energy. The power plant now has a capacity of 195 Megawat (MW) but PLN and EWC have agreed to raise the capacity by 120 MW to 315 MW. To raise the capacity, the power plant will get additional gas supplies of 15 MMCFD from the Sengkang PSC in Wajo regency, South Sulawesi, operated by EWC's subsidiary Sengkang Energy Equity Epic starting from the last quarter of 2011.

"The price of the additional power will be the same as the existing one," he said.

In April this year, the power plant was forced to stop operation afer being stormed by the local residents, who, supported by the Wajo regent, demanded a higher royalty from the exploitation of the gas.

"It seems that BPMIGAS is still in talks with the Wajo regency administration," he said. (Bernard)