PLN Batubara to supply 8 million tons of coal a year

PLN Batubara, the coal trading unit of state owned electricity firm PT Perusahaan Listrik Negara (PLN), will supply at least 8 million tons of coal a year to PLN?s power plants in 2011, the company?s senior executive has said.

Chief Executive Officer Indriantono said in Jakarta on Tuesday that the coal would be mainly supplied to 26 new coal-fired power plants built under the first 10,000 megawatt power plant development program, including 2 x 660-MW PLTU Tanjung Jati B and 660-MW PLTU Paiton.

He said each power plant would receive about 20 percent of their coal needs from PLN Batubara, which was recently established by PLN to ensure supply of coal for the company?s power plants.

PLN?s coal needs have increased significantly following the operation of new coal-fired power plants built under the first 10,000-MW power crash program. The coal demand is expected to increase to 29.6 million tons next year from about 22.8 million tons this year. The coal need is expected to nearly double to 40.7 million tons in 2011.

The operation of new coal-fired power plants has substantially cut down PLN?s fuel consumption during the last two years. This year, the fuel use is expected to decrease to 8.8 million kiloliters from about 11.3 million kiloliters last year.

?The fuel consumption is projected to further decline to 4 million kiloliters in 2011,? PLN?s President Director Fahmi Mochtar has said. (*)