PLN signs EPC contract for CNG plant

By Godang Sitompul

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) signed on Friday an engineering, procurement, and construction contract (EPC) with a consortium comprising of PT Odira Energy Persada and PT Timas Suplindo for the development of a CNG plant.

Construction of the CNG plant, which will fulfill the gas requirement of the planned 155 MW Bangkanai gas engine power plant in Central Kalimantan, is expected to be completed in nine months.

Head of Fuel and Gas Division at PLN, Suryadi Mardjoeki said that gas supply for the Bangkanai plant will come from Salamander Energy at a volume of 20 mmscfd under a contract valid from 2015 to 2033 with a price of US$4.79 per mmbtu and a 3 percent escalation per three years.

PLN teams up with a consortium comprising of Wartsila Finland Oy and PT Pembangunan Perumahan Tbk in developing the gas engine power plant.

Editing by Reiner Simanjuntak