PLN signs 5.5 MTPA coal supply deals for proposed power plants

State electricity firm PLN on Tuesday signed 5.5 million tons per annum low-CV coal supply agreement with a number of coal suppliers for its planned coal-fired plants that would be built in Java.

PLN Deputy Director Tonny Agus Mulyantono said that coal supply for its proposed 3x315-MW Teluk Naga power plant in Banten would be supplied by Kasih Industri Indonesia and Senamas Energindo Consortium (1.43 MTPA, CIF) and PT  Arutmin Indonesia-Dharma Henwa consortium (858,000 TPA) at price of Rp.252,000 (US$=Rp.9,300) per tonne CIF.

Pacitan 2x316 MW power plant in East Java would get 950,000 TPA supply from Arutmin-Dharma Henwa consortium at Rp.269,000 per tonne CIF.

Pelabuhan Ratu 3x315-MW power plant in Banten would get supply from Titan Mining Energy consortium (1.43 MTPA) and Bara Mutiara Prima (850,000 TPA) at price of Rp. Rp.275, 000 per ton CIF.

The contracts are signed for 20 years delivery, said Tonny.

Tonny said that the volume secured represented 80 percent of total annual volume needed for Teluk Naga and Pelabuhan Ratu and 50 percent for Pacitan. The remaining coal supply needed would be tendered later along with coal supply requirements for power plants that would be built outside Java.

The three power plants would be built for PLN by a consortium of Chinese companies and local firms and are part of the 10,000-MW coal-fired power plants development program that the government is planning to meet increasing electricity demand in the country. The power plants are expected to commence production in 2009-10. (godang)