Supreme Energy allocates $350m to develop Muara Laboh power plant

By Cepi Setiadi

Power company PT Supreme Energy has allocated US$ 350 million for capital expenditure (capex) this year to help finance the development of Muara Laboh geothermal power plant project in South Solok Regency, West Sumatra Province. The power plant has a planned capacity of 2 X 110 MW

Supramu Santosa, Supreme Energy?s President Director told Petromindo.com at the recent Bali Clean Energy Forum 2016 that the funds will be used to finance the construction of the first stage of the power plant project.

?For the first stage we will develop around 80 MW,? he said, adding that geothermal exploration and EPC have been completed. ?We expect to start construction in September 2016 and to be completed by 2019,? he ended.

The power purchase agreement (PPA) for the project was signed on March 2, 2012 with state-owned power firm PT PLN for a 30-year period after commercial operation date (COD). In this project, Supreme Energy has set up a joint venture with Engie and Sumitomo.

Editing by Reiner Simanjuntak