Kyushu Electric may buy stake at N. Sumatra power plant project

Japan power firm Kyushu Electric may buy 20 percent stake at Sarulla geothermal power plant project in North Sumatra, official of JSX-listed energy firm PT.Medco Energi Internasional said on Monday.

CEO Hilmi Panigoro told reporters on Monday that Kyushu would buy part of Medco?s 42.25 percent shares in the project. He did not idsclose detail about the price.

Medco-led consortium which members include Japan?s Itochu Corp which holds 25 percent stake and US firm Ormat Technologies Inc. which holds 12.75 percent, had been chosen by state electrocity firm PLN to build and operate the proposed 340-MW plant at the cost of US$600 million.

The Sarulla project is to be constructed over the next five years in 3 phases of 110 to 120 MW each. Under the planned 30-year contract, the price of the power from the Sarulla power plant is 4.64 U.S. cent per kilwatt hour The construction of the Sarulla geothermal power plant is scheduled to begin in 2008 and to be completed in 2010.

PLN Deputy Director Nasri Sebayang said earlier this month that Power Purchase Agreement with Sarulla would be signed this month.

Medco and Kyushu had signed a pact earlier this month to cooperate to tap energy-related business opportunities in Indonesia and overseas. (godang)