PPA for PLTGU Jawa-1 project delayed
Wednesday, January 4 2017 - 04:07 AM WIB
Petromindo
State-owned electricity firm PT PLN has yet to sign a power purchase agreement (PPA) for the planned 1x1,600 MW PLTGU Jawa-1 combined-cycle power plant project with the winning bidder of the project, a consortium comprising of state-owned oil and gas firm PT Pertamina, Marubeni and Sojitz Corporation, Koran Tempo reported on Wednesday.
The PPA was supposed to be signed in mid-December, or 45 days after PLN announces the winning bidder for the project.
The paper quoted PLN Procurement Director Supangkat Iwan Satoso as saying that the PPA has yet to be signed as discussion over the terms of the contract has yet to be completed. He said that the consortium proposed changes to the terms of the contract in December.
Supangkat said that discussion over the terms of the contract is expected to be concluded next week. He is also optimistic that the estimated US$2 billion PLTGU Jawa-1 project in West Java can be completed in 2019 as planned.
The PLTGU Jawa-1 power plant will require gas supply of up to 250 mmscfd.
Supangkat said that PLN is currently waiting for certainty of the gas supply for the project. (*)