PLN, Pertamina in dispute over Kamojang geothermal steam price
Thursday, January 7 2016 - 01:08 AM WIB
PLN said in a statement on Thursday that the price set by PT Pertamina Geothermal Energi (PGE), a Pertamina?s subsidiary, for the Kamojang steam is too high. It thus warned if the price is not lowered, PLN will stop buying from the steam.
PLN has been buying geothermal steam from PGE for 32 years to feed its power plants there, called PLPT Kamojang 1, 2 and 3, which have a combined capacity of 140 MW.
?If the price is reasonable, we shall buy since we have been cooperating with Pertamina for 32 years. However, we are now puzzled as to why Pertamina is now setting a higher price for the steam for the next five years,? PLN?s Senior Manager Agung Murdifi said.
He said that after making comparison with the geothermal fields operated by PLN in Matalako, Ulumbu Flores and Tulehu Ambon, PLN estimates the reasonable price for Kamojang steam is Rp 535 or 4 US cents per kWh. Pertamina however set a higher price, Agung said, without specifying the price.
He said if PLN finally decides to stop buying the Kamojang steam from Pertamina, it does not mean PLN does not care about renewable energy, pointing out the fact that PLN recently signed a Power Purchase Agreement with PGE to buy power from PLTP Kamojang 5 at $9.4 cents per kWh. Different from PLTP Kamojang 1, 2, and 3, where PLN owns the power plant and Pertamina acts as steam seller, PLTP Kamojang 5 is owned by PGE, which also acts as steam supplier.
PLTP Kamojang 5 (35 MW) was inaugurated by President Joko Widodo on June 29. PGE is developing another power plant at the site, called PLTP Kamojang 4 (60 MW)
Agung said if PLN stops buying steam from PGE and as such is forced to suspend the operation of its PLTP Kamojang 1, 2, and 3, power supply on the Java-Bali grid will not be affected as at present there is enough supply on the grid.
Wianda Pusponegoro, Pertamina?s spokesperson, acknowledged that negotiation between both firms over the Kamojang steam price has been deadlocked.
?There isn?t yet any agreement. Pertamina has offered to extend the interim agreement, but (rather than responding to the offer) PLN in its letter dated Dec, 29, 2015, asked Pertamina to shut down all wells that supply steam to PLTP Kamojang 1, 2 and 3,? she said in a statement released to counter PLN?s statement.
According to her, Pertamina has given PLN until Jan. 31, 2016 to accept to the interim agreement. Otherwise, Pertamina will stop supplying steam to the firm.
Editing by Johannes Simbolon