Riau plans to build gas power plants

The Riau provincial administration has considered building new power plants using gas from the field to be developed by Australian oil and gas firm Santos Limited, Vice Governor Raja Abdul Aziz said on Thursday.

Aziz said Riau is rich in natural gas, and the existing of diesel-power generators and hydropower plants are no longer enough for supplying electricity for local consumers.

He added Riau has now faced a power crisis as evidenced by the blackout which had occurred over the past months. It was mainly due to the abrupt drop in the river water level at the Koto Panjang hydropower plant, Aziz said.

Aziz argues gas power projects are environmentally friendly and their operation is less costly. Moreover, only 18 months are required to complete such projects, Aziz said.

He said the Riau administration will establish a new enterprise, PT Riau Petroleum, which will run its gas power projects.

Aziz on Thursday met with officials of state oil and gas Pertamina and Santos.

Santos had discovered 500 million cubic feet of gas reserve in Korinci Baru, the official said. (*)