Supreme Energy, GDF Suez team up to develop Sumatra geothermal plants

Indonesian geothermal developer PT Supreme Energy is teaming up with European electricity firm GDF Suez to develop two geothermal projects in Sumatra and would spend US$1.2 billion to develop the projects.

Supreme Energy CEO Supramu Santosa said the Company has been appointed winner to develop Liki Pinangawan Muaralaboh in West Sumatra?s regency of Solok Selatan and Gunung Rajabasa prospect in Lampung province.

The Company conducted preliminary survey for the areas in 2008-2009 and confirmed the potential to generate 220MW of electricity on each prospect.

Supramu said the consortium would sell electricity from Liki Pinangawan Muaralaboh to state electricity firm PLN for US9.4 cents per kwh and 9.5 cents for Rajabasa.

The consortium will negotiate Power Purchase Agreement with PLN before starting ecxploration activities and the development of the power generation upon successful exploration, he said.

Supramu said both prospects have been included in the government?s fast track development to provide electricity supply for Sumatra area.

Supramu expected the projects could start production in 2014. (alex)