Medco Group plans to build power plant in Kalimantan

Medco Group is considering to building a power plant in Muara Teweh, Central Kalimantan as part of the business group's expansion program.

The founder and chairman of the business group, Arifin Panigoro, said in the province's capital Palangkaraya Wednesday that the group which at present is mostly involved in oil and gas exploration and production activities, would take the advantage of its gas field in the province in building the power plant.

"There is a gas field in Muara Teweh which could supply a power plant with a capacity of up to 120 megawatt," he was quoted as saying. Arifin added that he had also met with representatives of state owned electricity company to discuss the possibility of developing the power plant.

"But we need to further study the possibility," he said. According to him, building a power plant with a capacity of about 120 megawatt would need investment funds of about US$50 million. "We can do it but perhaps, gradually," he added.

Besides involved in the production of gas and oil, the business group also operates a 1,000 hectare-plantation plant in Kotawaringin Barat, Central Kalimantan. (Godang)