PLN still needs gas supply from revitalized Arun plant

Monday, July 22 2013 - 05:55 AM WIB

By Bernard Loebs

State utility PT Perusahaan Listrik Negara (PLN) is still in need of gas supply at 10 bbtud from the revitalization of liquefied natural gas (LNG) plant in Arun, Aceh, to enable it to supply the gas need of the gas-fired power plant (PLTG) Arun which will be onstream at the end of 2014.

PLN Gas and Oil Fuels (BBM) Division Head, Suryadi Mardjuki, said that the revitalization of the LNG plant will be completed in 2015, while the power plant will not be in full capacity until it can be fully fed with its total gas need in 2015.

Suryadi noted that PLN has already secured contracts of gas supply with Medco in Block A at 15 bbtud. It has been signed in 2008. But in order to fully supply the power plant at its full generation capacity of 184 megawatt (MW), PLN still needs an additional supply of 10 bbtud from the revitalized Arun plant. But there has been no agreement yet regarding the gas price from the revitalized plant.

Previously, PLN and PT Wijaya Karya Tbk signed a contract to construct the 184 MW gas fired Arun power plant in Aceh. PLN President Director Nur Pamudji said that the power plant, which is located on the area of PT Arun LNG in Lhokseumawe, Aceh, and partly fed with gas supply from the area, is expected to be completed within 18 months.

He said that the signing of the contract set a new milestone for PLN as it covers for the first time two tender processes in one tender, namely the engineering procurement construction (EPC) tender, and the financing package from a lender proposed by the contractor as the winner of the EPC tender.

?Of five participants of the tender, PLN selected a winner which also provides a financing package from a creditor,? he said.

PT Wijaya Karya Tbk President Director Bintang Perbowo said that the power plant project will need a total investment of around Rp 35.4 billion and 81.2 million Euro.

?With a strong synergy with all parties concerned, including with PLN, we?re optimistic to complete the development as expected,? he said.

Editing by Benget Besalicto ST

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