PLN considers building power plant together with LNG receiving terminal

State electricity firm PLN said that it was considering to build new power plant in LNG receiving terminal complex that it planned to build near Jakarta.

?It would be very efficient to build new power plant within the complex,? said director Ali Herman Ibrahim. He hinted that the power plant capacity that PLN was considering to build was 750 MW.

PLN is planning to build LNG receiving terminal, which is expected to become operational in 2007/2008. The terminal will be built in two phases with first stage planned to be able to handle 400 million cubic feet of gas per day (MMCFD) or about 3 million tons of LNG per year, ramping up to 800 MMCFD. Estimated the investment needed to build the first phase receiving terminal is around US$300 million.

PLN president Eddie Widiono said that thus far, six companies had offered their cooperation to develop the terminal. Eddie did not say the coampnies names, but a PLN source said that Japan?s Mitsui, South Korea?s Kepco, Malaysia?s Petronas, German?s Ferrostaal AG and Indonesia?s Pertamina and Medco Energi International Tbk, had expressed interest to participate in the project.

?Basically the companies are offering cooperation to jointly build the receiving terminal, supplying the LNG, transporting the LNG and to build the power plant,? said Eddie.

Kellog, Brown&Root had been hired by PLN to complete feasibility study for the receiving terminal and ABN Amro is appointed financial advisor for the project. (godang)