Pertamina, Aceh government to develop geothermal project

After a lengthy delay, state-owned oil and gas firm PT Pertamina said it was now ready to develop the Seulawah Agam geothermal power plant project in the province.

The promise was made on Wednesday during a meeting between Aceh Governor Zaini Abdullah with visiting Pertamina officials led by company Director of New and Renewable Energy Yenni Andayani, Tribunnews reported.

As a first step to realize the project, Pertamina subsidiary PT Pertamina Geothermal Energi will sign a shareholder agreement with an Acehnese government owned company.

Pertamina won the Seulawah Agam geothermal concession in November 2013. But since then, the company has yet to start developing the project as the company considered the electricity price set by state-owned power company PT PLN from the project of 6.95 US cents per Kwh as too low and not economically attractive to realize the project.

Pertamina?s Yenni asked the Acehnese government to help in negotiation with PLN to increase the power purchase price. Governor Zaini Abdullah said he was ready to talk with PLN and Minister of Energy and Mineral Resources Sudirman Said.

Head of the Aceh administration mining office, Said Ikhsan said that the Seulawah Agam geothermal power project is designed to produce 55 MW of electricity in the initial phase, and would later be expanded up to 165 MW to help increase power supply in Aceh, which has been suffering from power shortage. (*)