PGN, Keppel in talks to build Batam power plant

State gas distribution company PGN confirmed on Tuesday that it was holding talks with the unit of Singapore?s conglomerate Keppel Group to jointly build and operate gas-fired power plant in Tanjung Sengkuang near Batam island.

?Yes, PGN and Keppel had been in talks, but it was still very preliminary,? said PGN president WMP Simandjuntak, refusing to disclose any detail.

Source said that the plant was set to fill Batam?s electricity shortage and to tap the region?s favorable electricity tariff. The source further said that gas supply to the power plant would be obtained through South Sumatra-Singapore pipeline operated by PGN, which passed through Batam. (godang)