GEMS to double capacity of Sumsel 5 power plant

By Cepi Setiadi

IDX-listed energy company PT Golden Energy Mines, Tbk (GEMS), which is part of the Sinar Mas Group, stated it will develop another coal-fired power plant with 2x150 MW capacity, doubling the capacity of the PLTU Sumsel 5 coal-fired plant in South Sumatra, which has been on stream since April 2016.

Investor Relations Manager Bindra Setya Utama told Petromindo.com on the sidelines of the Sixth IPP Conference recently held by Petromindo that the new PLTU will be developed in the same location as PLTU Sumsel 5 in Bayung Lencir, Musi Banyuasin regency, South Sumatera province developed by PT Dian Swastatika Sentosa Tbk, another Sinar Mas company.

?This extension project used to be called Sumsel 7 Project, but changed to become our extension of Sumsel 5 with 2x150 MW, hence the Sumsel 5 plant will have total capacity of 600 MW,? Bindra said, adding that for this project the firm is looking forward to having direct appointment from state-owned utility PLN.

?Informally, we have good sign from PLN regarding this, so we're just waiting for the formal letter of the direct appointment from PLN,? he said, adding that for this expansion project the investment will be around US$ 1.5 million per MW . Bindra said that once PLN issues the direct appointment letter for the project the firm will directly to develop the power plant.

Editing by Reiner Simanjuntak