Riau, Indojaya to develop gas-fired power plant

PD Pembangunan Kota Pekanbaru, a company owned by the Riau provincial administration, plans to build a 420 MW gas-fired power plant in Tenayan, in the provincial capital, Kontan reported on Tuesday.

The paper quoted President Director of the local company Heri Susano as saying that the administration has appointed PT Indojaya Nusantara Investama as partner in developing the project.

Under the partnership, Indojaya will finance the entire Rp 3 trillion power plant project. The two companies have formed a joint venture firm called PT Sarana Pekanbaru Energi, which is 90 percent owned by Indojaya, to develop the project.

Heri said that the joint venture firm has submitted the proposed project to state-owned electricity firm PT PLN, and hopes that the latter would be able to issue the necessary permit soon in the hope that the power plant could be completed in 2016.

Once the permit from PLN has been issued, Sarana will seek the EPC contractor for the power plant project, which would help meeting power demand in Riau which has been growing at an annual rate of 11 percent, the highest in Sumatra.

Heri said that Sarana has signed an MoU with state-controlled gas distribution firm PT PGN Tkb for the latter to supply the necessary gas at a volume of 40 mmscfd. (*)