Pertamina Geothermal earmarks $200 million for capex
To start negotiation price with PLN
Tuesday, December 15 2009 - 02:03 AM WIB
PGE?s President Abadi Poernomo said in Jakarta on Monday that the capital expenditure to be allocated in the company?s 2010 budget would be far higher than $130 million this year.
?The funds will be provided by parent company Pertamina in the form of loans,? he said on the sidelines of an energy seminar at the Darmawangsa hotel, Jakarta . He said that the funds would be used to finance the development of 27 new geothermal wells.
The new wells will include four wells in Kotamobagu, North Sulawesi, four wells in Penuh River, Jambi, four wells in Hululais, Bengkulu, six wells in Lumut Balai, Muara Enim, South Sumatra, two wells in Karaha Bodas, West Java, four wells in Ulubelu, Lampung and another three wells in Lahendong.
Abadi said that beginning 2011, PGE would begin the operation of two geothermal power plants - the PLTP Karaha Bodas with a capacity of 30 megawatt (MW), and PLTP Ulubelu Unit I (110 MW).
Two more geothermal power plants including PLTP Lumut Balai with a capacity of 110 MW and PLTP Lahendong with a capacity of 20 MW would begin commercial operation in 2012, he added.
In January, PGE and PLN as the buyer would negotiate prices of power supply to be produced by PLTP Lumut Balai Unit 1 and 2, PLTP Lahendong Unit 5 and 6 and PLTP Ulubelu Unit 3 and 4, he said.
Abadi said PGE is holding talks with International Cooperation Agency (JICA) and World Bank on loans from both agencies for the firm's geothermal projects.
JICA is expected to finance the development of PLTP Lumut Balai Unit 1 and 2 which have a combined capacity of 110 MW, while World Bank is expected to finance the development of PLTP Lahendong and Ulubelu.
"We are also talking with Asian Development Bank and KfW of Germany," he said. (Godang)