PLN Batam to build natural gas-powered power plant

State electricity company PT Pelayanan Listrik Nasional Batam planned to build a US$12 million natural gas-powered power plant on Batam island, expected to be completed by 2003, Bisnis Indonesia reported on Thursday.

PLN Batam chief Ali Herman said that the power plant would use natural gas from West Natuna, and therefore, his party was currently awaiting the result of negotiations between PLN and a consortium of West Natuna, that produces the natural gas.

"Based on our calculation, the power plant will need a total investment of at least US$12 million, including to build the piping line. Therefore, we are asking for discounts in the gas prices," he said on Tuesday.

He explained that the piping would connect with the consortium piping line in Raffles straits in Singapore.

Ali said that negotiations with the West Natuna consortium, comprising of Conoco and Premier Oil, has run for some times, and moved closer to an agreed price. The principle is that the pricing should benefit both parties, the gas supplier and also the consumer, the power plant. (*)