PLN plans tender for PLTGU Jawa-3 in Q4

Petromindo

State-owned electricity firm PT PLN plans to open tender for the 1x800 MW PLTGU Jawa-3 gas and coal-fired power plant project in the fourth quarter of this year, a delay from the initial schedule of mid-2017.

Bisnis Indonesia quoted Procurement Director of PLN, Supangkat Iwan Santoso as saying Tuesday that power plant companies wishing to participate in the project will have to partner with PLN subsidiary PT Pembangkitan Jawa Bali (PJB).

He added that gas supply for the planned PLTGU Jawa-3 power plant, located in Gresik, East Java Province, is expected to come from the Jambaran-Tiung Biru gas field owned by PT Pertamina EP Cepu, an indirect subsidiary of state-owned oil and gas firm PT Pertamina.

Supangkat, however, acknowledged that the company has yet to reach agreement on the gas price. He said that the price at the well-head offered by Pertamina EP Cepu at US$8 per mmbtu is too high for PLN. An additional toll fee of $1 per mmbtu, will make the gas price to reach $9 per mmbtu at the power plant location. He said that the ideal price for PLN is $7 per mmbtu, which means the price at the well-head must be lowered to $6 per mmbtu.

He said that if PLN could not reach a deal over the gas price with Pertamina, the utility will seek other sources including LNG alternative.

He said that PLN is seeking gas supply of up to 100 mmscfd from the Jambarang-Tiung Biru fields, about half of which to be allocated for PLTGU Jawa-3 and the balance for the PLTGU Tambak Lorok. (*)