PLN plans to build power plant near Donggi-Senoro LNG project

State owned electricity firm PT Perusahaan Listrik Negara (PLN) is considering building a power plant near the planned Donggi-Senoro LNG project in Central Sulawesi to get cheaper gas.

?Donggi-Senoro is an opportunity to meet our gas needs. We are interested in using the gas for our power plant," PLN?s President Director Fahmi Mochtar said on Tuesday.

PLN may opt to set up a power plant with a minimum generating capacity of 100 MW near the project as it was cheaper than buying LNG for power plants in Java or Sumatra, he said.

He noted however there aren't yet any talks regarding price with the owner of the project.

State owned oil and gas firm PT Pertamina, along with partners Mitsubishi Corp and PT Medco Energi International, plans to develop the 2-MTPA LNG plant with gas supply from Donggi-Matindok block owned by the state owned firm and Senoro-Toili block, jointly owned by the state owned firm and Medco.

Earlier, Fahmi said that PLN is ready to buy as long as the price is ?reasonable? and ?mutually beneficial? to both PLN and producers.

Donggi-Senoro LNG might supply proposed LNG terminals in Jakarta and North Sumatra, which PLN is planning to develop along with partners state oil, gas company PT Pertamina and state gas distribution firm PGN, Fahmi said on Aug. 10, 2009. (godang)