NuEnergy to install power generation unit at Muara Enim PSC
Monday, October 8 2012 - 02:39 AM WIB
Australia-listed firm NuEnergy Gas Ltd is planning to install a small scale power generation unit at the Muara Enim Well#2 site in South Sumatra for self-generation and to enable early revenue from sale of surplus power into the local power grid.
State-owned electricity firm PLN has confirmed to NuEnergy its interest in purchasing power produced from the Muara Enim pilot development site for export into its local low voltage power grid.
?Negotiations for this sale will commence in this quarter in parallel with the dewatering and pilot development program,? NuEnegy said in a statement Monday. With success, the generation capacity at this site is planned to be increased in 2013 to 3-4 Megawatts consistent with the gas production expected from the pilot development site, it added.
A minimum gas price of US$7.5 per mmbtu is guaranteed by the Indonesian Oil and Gas Regulator (BPMIGAS) and prices for small scale power supply into the low voltage grid (which a also regulated) are in the order of US$0.12/kwh, the company said.
Editing by Reiner Simanjuntak