PLN's repowering projects might be delayed until 2008

State owned electricity company PLN's president director Eddie Widiono said in Jakarta on Monday that the repowering projects of Muara Karang, Muara Tawar and Tanjung Priok power plants with a combined capacity of 1,600 megawatt might be delayed until 2008 due to gas supply problem.

"We initially scheduled to begin these projects next year, but these projects might be delayed until 2008 due to the lack of gas supply," he was quoted as saying by Kompas daily on Tuesday, adding that PLN had began the pre-qualification stage for the projects.

At present, only part of the power units at the three power plants use gas. The others still use oil.

Eddie said the repowering projects would cost about US$1,000 per kilowatt.

He said the Japan Bank for International Corporation (JBIC) has agreed to provide loan worth 74 billion yen for repowering project at the Muara Karang and the Muara Tawar power plants.

Separately, the head of BP Migas, oil and gas production regulatory body Kardaya Warnika said that PLN had already received a commitment from Pertamina to provide gas supply of about 100 million cubic per day beginning early 2007 and another 50 million cubic per day from PGN. (*)