Supreme Energy will soon sign power purchase agreement

PT Supreme Energy will sign in March a power purchase agreement (PPA) with state electricity company PLN for the electricity it will produce from the WKP Liki Pinanganwan geothermal field in West Java and the WKP Rajabasa geothermal field in Lampung.

The company?s president director Supramu Santoso said in Jakarta on Thursday that the state electricity company would purchase the power from both geothermal fields at a price below the government?s ceiling of 9.7 US cent.

?We don?t need to negotiate with PLN because our price proposal is still below the government?s ceiling,? he said, adding that with the signing of the purchase agreement, the company planned to begin the development of the geothermal fields next year.

The geothermal fields are two of the company?s three geothermal working areas. The other one is the WKP Rantau Dadap located in South Sumatra. But the company still waited for the government?s assignment to be able to sign a power purchase agreement for the company?s third geothermal field .

He said that the drilling activities would be started in January next year at the WKP Liki Pinangawan field and in January at the WKP Rajabasa field.

?The development of three geothermal fields is part of the government?s second 10,000 megawatt- fast track power plant development program. We hope our three projects will be able to go on stream at the end of 2013 and 2014,? he said. (giok)