PLN projects its coal consumption up by 50 percent

State owned electricity firm PT Perusahaan Listrik Negara (PLN) projects its coal consumption to reach 50 million tons this year, up by around 50 percent from last year's realized consumption of 34.2 million tons.

Last year, the firm targeted to consume 38 million tons, but the realized amount was 34.2 milion tons.

"There will be a significant increase in consumption because some of the coal--fired power plant projects under the Phase One 10,000 MW progrma will be completed this year," PLN's primary energy director Nur Pamudji said on Tuesday.

The coal will be sourced from seven holders of coal contract of works (PKB2B) which will supply the coal as part of their domestic market obligation (DMO), including PT Arutmin Indonesia which recently signed a contract involving the supply of 7.2 million tons of coal to the public utility.

He also said PLN consumed 9.1 million kiloliters (KL) of petroleum-based fuels (BBM) last year, compared with the target of 9.2 million KL. This year, the firm expects to consume 8 million KL of BBM, 1.25 million KL of which has been tendered.

Gas consumption is projected to increase to 293 terra Btu, from 283 terra Btu last year.

He said PLN has allocated a budget of Rp 89 trillion for the purchase of primary energy this year. (Godang/Giok)