Indonesia Power to build combined cycle power plant in Batam
Monday, September 18 2006 - 02:05 AM WIB
The entire output of the plant will be sold to Singapore through submarine cable.
?We will sign the memorandum of understanding (MoU) to form a consortium with Singapore and Japan. Hopefully, end of this month,? IP's director trade and development Bambang Isti Eddy said in Bandung recently.
According to Bambang, IP has yet to make a decision on the total investment required, including the costs of lying under sea cable.
He said the consortium will have IP (10%), Japan?s ORIX Corporation (30%), Singapore?s GUDC (30%) and others 30% as its members. Singaporean company Tuas Power will buy the electricity.
Bambang said the consortium would later negotiate with the potential gas suppliers. Currently, two sources of gas sources are available. They are a gas field operated by ConocoPhillips in South Sumatra and from Natuna.
?We will certainly choose the best one. It will be certain that the gas price will be much cheaper than in Singapore. On the domestic market the gas price is around US$3.5 MMBTU, much economical than $6 per MMBTU in Singapore,? Bambang said.
After reaching an agreement with the gas supplier, Bambang said, the construction work will begin and it will take around two years time to complete the plant. (*)