Repowering of PLN's three major power plants might be delayed

The repowering of state owned electricity company PLN's three major combined cycled power plants PLTGU Muara Karang, PLTGU Tanjung Priok, and PLTGU Muara Tawar, all located in the Jakarta greater area, might be delayed due to uncertainty related to their gas supply, Kompas reported on Monday.

Muljo Adji AG, the head of PLN's distribution and power traffic control, said in Jakarta last week that the repowering of three power plants had been scheduled for commencement next year. "But uncertainty in the gas supply might result in the delay in the projects," he said.

The repowering works which would increase in the power generation capacity of Muara Karang and Tanjung Priok power plants by 500 MW each and Muara Tawar power plant by 150 MW could be delayed because gas distributor PGN can only provide 50 million cubic feet per day, only a half of the 100 million cubic feet per day required.

"If the government cannot help to ensure that PLN will receive enough gas supply from PGN, the projects will be delayed. Japanese Bank for International Corporation (JBIC) which has pledged to provide loans of up to 73.9 billion yean for the projects would not disburse the loans if there is no assurance of the gas supply," he said.

At present Muara Karang plant has a capacity to produce 1,200 MW, Tanjung Priok about 1,300 MW and Muara Tawar about 900 MW. All the power plant have been designed to be able to use both diesel oil and gas but due the decline in the fuel prices, PLN will increase the portion of gas in the operation of the three plants. (*)