KEP to start construction of Senipah power plant project next year
Monday, October 9 2017 - 09:39 AM WIB
Petromindo|Khalsa
Independent power producer PT Kartanegara Energi Perkasa (KEP) plans to start construction of the second phase of PLTGU Senipah combined-cycle power plant project in Kutai Kartenegara, East Kalimantan, early next year.
KEP Director Renzi Renditya told a press conference on Monday that the 35 MW PLTGU project is targeted to be completed in 2019. He said that the company had on September 22 concluded financial close of the estimated US$6 million project, with state-owned Bank BNI as the lead arranger.
?Construction will start in early 2018. Construction will last for 24 months, so that it will start operation in the third quarter of 2019,? he said, adding that PT RCR Asia and PT Truba Jaya Engineering have been appointed as the EPC contractors.
KEP, a subsidiary of PT Toba Sejahtera, currently operates the first phase of the Senipah PLTGU with capacity of 82 MW.
Renzi said that the company has signed in December of last year with state-owned electricity firm PT PLN a 25-year power purchase agreement (PPA) for the second phase PLTGU Senipah, under which the electricity output will be sold to the utility firm at a tariff of 8 US cents per kWh.
He added that the second phase power plant will utilize exhaust gas from the first phase power plant.
The first phase of the Senipah PLTGU is run on gas supplied from the Mahakam block operated by Total EP Indonesie at a volume of 20 mmbtu per day and price of US$4 per mmbtu.
The gas supply contract, which was signed in 2015, is set to expire at the end of this year as Total?s contract over the block will also expire. State-owned oil and gas firm PT Pertamina will take over the block starting next year.
Renzi said that KEP has started talking with Pertamina over renewal of gas supply contract from Mahakam block, but could not yet provide much details.
Editing by Reiner Simanjuntak