PTBA to get captive market in 2008
Friday, January 16 2004 - 12:46 AM WIB
?The two power projects will be our captive market,? PTBA?s president Ismet Harmaini told reporters in a public expose.
PTBA and PT Indonesia Power, a unit of state owned utility PLN, have planned to build a 2x100-megawatt (MW) coal-fired power plant in Banjarsari of Lahat Regency in South Sumatra. PTBA will hold a 24 percent stake in the project, Indonesia Power 51 percent, while the remaining stake will be offered to another Indonesian company.
The feasibility and environmental studies for this project have completed.
?We are still in negotiations with PLN to get a power purchase agreement for the electricity from Banjarsari power plant,? said Ismet.
Ismet said the Banjarsari project would cost around US$200 million and around 70 percent of which would be financed with loan. The project is expected to start commercial operation in 2008 and it will need coal feed of around one million tons per annum.
Meanwhile, the Pranap power plant will be built in a cooperation with Indonesia Power and Riau?s provincial government. The 2x250 MW power project will cost around $500 million.
?The feasibility and environmental studies for the Pranap project is expected to be completed in the first quarter of 2004,? Ismed said.
According to Ismet, the Pranap power project will need coal supply of around 3 million tons annually.
Ismet said that PTBA would continue studying the possibility to build coal-fired power plants in the southern part of Sumatra in order to boost its coal production and sales.
Currently, PTBA?s coal products are mostly dedicated to the 3,400-MW Suralaya power plant in Banten province and the 2x60-MW Tarahan power plant in Lampung province, both operated by Indonesia Power.
PTBA operates two coalmines in South Sumatra and West Sumatra provinces with a total mineable reserve of 1.5 billion tons of coal. The company produced around 9.9 million tons of coal in 2003 and its output has targeted at 10.3 million tons this year. (Robert)