Foreign oil firms compete to become PLN’s fuel supplier
Wednesday, February 11 2004 - 03:04 AM WIB
Three foreign oil companies including Chevron Texaco, BP Plc and Lukoil have formally submitted proposals to become the main fuel supplier of the state owned electricity company PLN, Bisnis Indonesia reported on Wednesday.
PLN president director Eddie Widiono said in Jakarta on Tuesday the proposals submitted by the three companies were quite attractive but PLN would first assess them before making any decision.
“The most important thing for PLN is that the purchase of the fuel from them should be less costly compared to the existing contracts,” he said.
This year, PLN has allocated about Rp 20.8 trillion for the purchases of oil fuel, gas and coal for its power plants. For oil fuel alone, PLN will spend at least Rp14 trillion.
PLN’s price reference for diesel oil is Rp1,800 per litter, Rp234 per kilogram for coal, Rp330 per kWh for geothermal energy and US$2.4 per million cubic of gas. (*)