PLN says gas price for Tanjung Selor power project still expensive
Tuesday, July 18 2017 - 02:02 AM WIB
State-owned electricity firm PT PLN is currently still engaged in negotiation over price of gas to be allocated for its planned 15 MW Tanjung Selor PLTMG gas engine power plant in North Kalimantan.
The company said that the gas price is still too high. ?We?re currently engaged in price negotiation for the gas as it is still expensive,? said PLN Business Director for Kalimantan Region, Djoko R. Abumanan to Petromindo.com late last week.
Djoko said that preparations for the construction of the power plant project are ongoing as the company aims to complete the project next year. A couple of months ago, the company completed acquisition of part of the land requirement for the Tanjung Selor PLTMG project.
PLN initially planned to start construction this year of the 6 MW PLTMG Malinau, also in North Kalimantan, but has decided to postpone it pending completion of the PLTMG Tanjung Selor project.
?Capacity of the PLTMG Malinau is smaller, so we?re going for the larger capacity first as (electricity) demand in North Kalimantan is also quite large. Once the PLTMG Tanjung Selor has been completed, then we?ll make further assessment whether it (the Malinau project) is still needed or not,? Djoko said.
PLN is also planning to develop a 10 MW PLTMG Nunukan 2 project, targeted to be completed in 2020.
Editing by Reiner Simanjuntak