PPA of PLTGU Jawa-3 delayed

Signing of the power purchase agreement (PPA) of the 800 MW PLTGU Jawa-3 combined cycle power plant project is unlikely to be made this year as initially planned, which risks further delay in the construction and completion of the project, Bisnis Indonesia reported on Thursday.

The paper quoted Strategic Procurement Director at state-owned electricity firm PT PLN Supangkat Iwan Santoso as saying that the utility is still in negotiation over the tariff of electricity from the project with the developer.

The PLTGU Jawa-3 project will be developed by PLN subsidiary PT Pembangkitan Jawa Bali (PJB) and its partner Marubeni Corp, which respectively owns 51 percent and 49 percent interest in the project. PJB has also offered Marubeni to entirely fund the project.

According to PLN 2018-2027 electricity procurement business plan (RUPTL), the PLTGU Jawa-3 project is targeted to start commercial operation in 2021.

The PLTGU Jawa-3 will obtain gas supply from the Jambaran Tiung Biru (JTB) field in Central Java currently being developed by PT Pertamina EP Cepu, a subsidiary of state-owned oil and gas firm PT Pertamina.

Pertamina and PLN have signed a 30-year contract for the supply of 100 mmscfd of gas from the JTB project at a price of US$7.6 per mmbtu. The PLTGU Jawa-3, however, will only need gas supply of 80 mmscfd. (*)