MedcoEnergi, Itochu to build Sarulla geothermal power plant next month

JSX listed energy firm Medco Energi International-led consortium would start building a 340 MW Sarulla geothermal power plant in North Sumatra next month, Bisnis Indonesia Daily reported on Tuesday.

 

Earlier, the construction of the Sarulla geothermal power plant is scheduled to begin in 2008 and to be completed in 2010.

 

RE Nainggolan, head of the North Sumatra Provincial Development Planning Board, said on Monday in Medan that MedcoEnergi, state electricity company PLN and state oil and gas firm PT Pertamina were expected to complete the transfer of the management of Sarulla in August.

 

“The dicision to expedite the construction of the power plant was made at the meeting in Jakarta last week,” he said.

 

Last year, PLN transferred the Sarulla geothermal power plant project to a consortium led by MedcoEnergi following the withdrawal of the winner of the project, Geo Dipa Energi, a joint venture of PLN and Pertamina. Other members of the consortium are Japan's Itochu Corp (25 percent) and US firm Ormat Technologies Inc. (12.75 percent). been chosen by PLN to build and operate the power plant at the cost of US$600 million.

 

The US$600 million Sarulla project is to be constructed over the next five years in three phases. A power unit with a capacity of between 110 to 120 MW will be built in each phase. Under the 30-year contract, PLN will buy power from the power plant at  4.64 U.S. cent per kilowatt hour. (*)