Paiton Energy secures 7.5 MTPA of coal supply

PT Paiton Energy (PE), a unit of UK power plant International Power Plc that runs Paiton power plant in East Java said that the company will need a total of 7.5 million tonnes of coal per annum once its 1x 815 MW Paiton 3 expansion project starts commercial operation in March 2012.

The industrial source told Petomindo.Com that Paiton Energy will only receive the coal from its two reliable suppliers namely South Kalimantan coal miner PT Adaro Indonesia, and East Kalimantan coal miner PT Kideco Jaya Agung, which will supply 5 million and 2.5 million tonnes per year respectively under long-term contracts with price to be negotiated annually.

Paiton Energy is currently running Paiton 7 and 8 units with combined capacity of 1,230MW. For Paiton 7 and 8, Paiton Energy needs around 4.5 million tonnes of coal per annum, of which Adaro supplies around 3.3 million tonnes and the remaining 1.2 million tonnes supplied by Kideco.

For Paiton 3, Paiton Energy will need 3 million tonnes per annum of coal to run the power plant, which Adaro and Kideco will start supplying in January 2012 with volume of 2 million per annum and 1 million tonnes, respectively.

Since the Paiton 3 has started commissioning last month, Adaro and Kideco has supplied a total of 300,000 tonnes of coal for the commissioning stage. (denny)