EWC says S. Sulawesi power plant expansion to be commissioned 2007

Australian energy firm Energy World Corporation Limited (EWC) said 60-65 MW addition to its 135MW power plant in Sengkang, South Sulawesi is scheduled for commissioning in July 2007.

The company said in an annual report released Friday that outstanding details of the project's expansion are expected to be finalized in the second half of this year.

The company also reported that financing agreements to fund the project had been drafted and are under review with the banks and sponsors.

EWC has 47.5 percent stake at Sengkang power plant. Another 45 percent stake is owned by US energy firm El paso Corp, which is intending to sell its stake to another US firm Globeleq.The remaining 5 percent stake is held by local firm PT.Trihasra, which is also intending to sell its stake in the plant to JSX-listed energy firm Medco Energi Internasional Tbk.

Sengkang power plant has a 20-year take-or-paypower sales agreement to state electricity firm PLN in the South Sulawesi electricity grid up to the year 2022.

Sengkang secured expansion right in 2002 after the Power Project agreed to cut electricity prices to PLN.

Gas supply for Sengkang plant is sourced from Sengkang PSC gas field, where EWC and El Paso are equal partners. Sengkang gas field is also located in South sulawesi.

EWC said that as per June 30, 2005, sengkang block has remaining proven and probable gas reserves of 425 BCF. Of these reserves, 152 BCF is committed to power station, leaving the excess capacity for the anticipated expansion of the power plant and for future sales in South Sulawesi, said the company. (alex)