Pertamina, PTPN III to build power plant in N. Sumatra

State-owned oil and gas firm PT Pertamina said it is teaming up with state-owned plantation firm PTPN III in developing a 250 MW steam and gas power plant in the Sei Mangkei special economic zone (SEZ) in North Sumatra.

Pertamina President Director Dwi Sutjipto said in a statement Tuesday that the cooperation between the two state firms forms part of efforts to help meet growing power demand in the region particularly in the SEZ.

He said that the first stage of the power plant project (open cycle) is projected to start operation in 2017, and the second stage combined cycle in 2018.

PTPN III is the operator of the SEZ.

Gas for the power plant is expected to come from the Arun LNG regasification facility in neighboring Aceh Province to be channeled via the Arun-Belawan gas transmission pipeline, and the Belawan-Medan Industrial Area-Sei Mangkei SEZ gas distribution pipeline, operated by PT Pertamina Gas.

Dwi added that PLN will become the offtaker of the electricity to be produced by the power plant.

Editing by Reiner Simanjuntak