S. Korea govt plans to build $1billion power project in Banten

The South Korean government through the Ministry of Knowledge Economy is planning to invest US$1 billion to build a 1000 Megawatt (MW) gas-fired power plant in Bojanegara, Banten province.

Director General of Electricity at the Ministry of Energy and Mineral Resources J. Purwono said on Wednesday that Indonesian government was studying the legal aspect and feasibility of the proposed project.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro explained that Korean government was proposing a swap mechanism for the power project, under which Indonesia will sell LNG to South Korea and South Korea will build gas-fired power plant.

?South Korea said that the value of the LNG contract will be the same with the power plant's,? he said, adding that he suggested that Korean government build the power plant through the independent power producer (IPP) scheme.

In September 2004, South Korea?s leading power producer Korea Electric Power Corp (KEPCO) said it may build a gas-fired power plant in Banten province, using the liquefied natural gas (LNG) from a receiving terminal to be built by the state electricity firm PT Perusahaan Listrik Negara (PLN).

?KEPCO has held a meeting with and discussed their plan to build a power plant near our LNG terminal,? PLN director Ali Herman Ibrahim said in September 2004. (Bernard)