PLN opens tender for two gas-fired power plants
Tuesday, February 14 2012 - 02:10 AM WIB
PLN Construction Director Nasri Sebayang was quoted by The Jakarta Post as saying on Tuesday that the Bengkanai power plant, which has a capacity of 280 MW, would be built in two phases. It is scheduled to be completed in 2014.
PLN President Director Nur Pamudji said by operating the gas-fired Bengkanai power plant alone, PLN would be able to save about Rp 1 trillion per year from a reduction of expenses on oil fuel use.
He said his company would get gas supply for its Bengkanai power plant from Bengkanai gas field, which was operated by Salamander Energy.
Based on a gas sales and purchase agreement, which was signed by PLN and Salamander last year, the Salamander would supply 20 billion British thermal units per day (btud). The price is pegged at US$4.79 per million btu with possible escalation of 3 percent.
The gas supply will be channeled through two methods, namely 11 billion btud through pipeline, and the remaining 9 billion Btud would be stored in the form of compressed natural gas (CNG).
Delivery of gas will begin in 2013 for a 20-year contract period lasting through 2033.
According to PLN, it has also planned to build a gas-fired power plant in Tanjung Batu, East Kalimantan, with a capacity of 50 MW, and another one in Makassar, South Sulawesi, with the same capacity.
The two power plants will use CNG as the primary energy source. The Makassar plant will receive its gas supply from the Sengkang block, operated by Energy Equity Epic (Sengkang).
PLN has started the construction of CNG storage facilities near the Sei Gelam 1 gas well, which has a production capacity of 2.5 billion Btud, in Jambi.
It stated that the CNG would be used during peak hours to improve operational efficiency.
Nasri also said that PLN planned to convert between 30 and 50 billion Btud of gas from the Terang Sirasun Batur field off East Java, operated by Kangean Energy, into CNG. The field was scheduled to supply gas to PLN in May 2012 with a total volume of 150 billion Btud.
The company has also signed a cooperation contract with Italian consulting company RINA, which will construct a marine CNG system to transport CNG from Gresik in East Java to Lombok in West Nusa Tenggara. (*)