PLN signs MoU to supply electricity to cement producers

State-owned electricity company PT Perusahaan Listrik Negara (PLN) will supply 66 megawatt (MW) of power to Semen Gresik Group, the consortium of state owned fertilizer firms, starting third quarter of 2010, Investor Daily reported Saturday.

The memorandum of understanding (MoU) for the power supply was signed in Jakarta on Friday.

PLN?s President Director Fahmi Mochtar said during the MoU signing ceremony that out of the 66 MW, 40 MW will be allocated for PT Semen Gresik in East Java and the remaining 26 MW will go to PT Semen Tonasa in South Sulawesi and Semen Padang in West Sumatra with each of them receiving 13 MW.

With regard to power sale price, Fahmi said that both PLN and the Semen Gresik Group agreed to set the sale price under b-to-b (business to business) mechanism, which will benefit the two parties.

Meanwhile, Semen Gresik?s President Director Dwi Soecipto said that the power supply to be received from PLN would be used to meet the need of power from its existing plans and those under construction.

Currently, the Semen Gresik Group is building two production units, located in Java and South Sulawesi respectively. (*)