Pertamina, PLN to sign steam price agreement

PT Pertamina Geothermal Energy (PGE) will sign early in June a heads of agreement (HoA) with state owned electricity company PT Perusahaan Listrik Negara (PLN) on the price of steam to be produced from the company?s geothermal project in Ulu Belu, Tenggamus, Lampung.

PGE spokesman Adiatma Sardjito said in Jakarta on Friday that details of the price of agreements had been approved by the two companies, but he refused to elaborate.

According to him, the ideal price of steam is between 8 and 8.5 US cent.

Under the agreement, PGE will supply steam to a geothermal power plant to be built by PLN in Ulu Belu for 30 years beginning 2011. The power plant will have two units each with a capacity of 2 x 55 megawatt.

PGE has drilled eight wells in the Ulu Belu geothermal field, two of which have been tested. The other six wells will be tested within the next few months.

Adiatma said PGE planned to drill up to 17 wells in the field, 15 of which would be used as steam production wells and the other two for injection wells.

The geothermal resources in the the Ulu Belu field have potentials to generate 150 megawatt of power in 2008 and 250 megawatt in 2009.

Adiatma said that PGE planned to build the unit 3 and 4 of the Ulu Belu power plant, which will also have a capacity of 2 x 55 megawatt each. The construction of the power plant will be included in the second stage of PLN?s 10,000 megawatt power development project. (bernard)