Medco expects contract amendment with Premier approved this month
Friday, July 5 2013 - 04:54 AM WIB
PT Medco Power said that it expected the amendment of sale and purchase contract of gas (GSA) from Gajah Baru field for domestic allocation would be approved by Premier Oil later this month.
With the certainty of the contract amendment, then Medco Power will secure the gas supply at 20 BBTUD for its 70 megawatt (MW) gas-fired power plant (PLTG) in Batam, Kepulauan Riau province.
"We hope that later this month, we can finalize with Premier Oil the amendment of the PJBG#3 (GSA) to PLN Batam and PJBG#4 to Universal Batam Energi (UBE)," Medco Power President Director Fazil Alfitri told Petromindo.com in Jakarta on Friday.
Fazil said that for the 70 MW gas-fired power plant, his company is installing a turbine machine. The turbine machine is of type Heavy Duty Frame 6B produced by General Electric France, which has arrived in Batam.
"Overall construction of the PLTG is expected to be completed in April or May next year; and we hope to receive the gas from Premier by July 2015. But we hope we can secure the contract as soon as possible as now demand for power in Batam is very high,? he said.
Fazil noted that if his company cannot yet get gas from Premier?s Gajah Baru field, they will temporarily supply the power plant with gas from Transgasindo (TGI) pipeline. TGI is a subsidiary of state gas distributor PT PGN.
"The gas from TGI is allocated at 40 BBTUD for PLN Batam which is constructing a power plant in Tj. Pucung. We?ll take about half of the gas volume from TGI,? he said.
Medco Power through its subsidiary PT Energi Listrik Batam, has signed a power purchase agreement (PPA) with PT PLN Batam on 15th October 2012. Based on the agreement, the PLTG will supply electricity in Batam for 20 years starting from year 2014. The PLTG will get its gas supply at 20 BBTUD from Gajah Baru field of Block A Natuna in Kepulauan Riau as part of domestic obligation of the operator Premier Oil Natuna Sea BV .
Fazil Alfitri further noted that the start date of operation of the power plant would mainly depend on the availability of gas.
Editing by Benget Besalicto Tnb