Supreme starts geothermal exploration in W. Sumatra

Supreme Energy, one of Indonesia?s major geothermal developers, plans to begin exploration activities at the company?s geothermal concession in Muaralaboh, Solok regency, West Sumatra in September, this year, Kontan daily reported on Tuesday.

President director Suprama Santoso said in Jakarta on Sunday that the company was currently building an access road to the geothermal field. ?We plan to conduct drilling activities in the middle of this month,? he added.

The company allocates about US$100 million to finance exploration works.

Supreme plans to build a geothermal power plant, with a capacity of 220 megawatt in the area. The plant is expected to begin commercial operation in 2015 or 2016.

In addition to the Muaralaboh geothermal field, Supreme is currently also developing two geothermal fields in Rajabasa, Lampung and Rantai Dadap, South Sumatra.

Supreme secured power purchase agreements from PLN for the Muaralaboh and Rajasabasa geothermal power plants in March this year after the finance ministry agreed to provide financial guarantee for the two projects.

PLN agreed to buy power supply at a price of 9.4 US cent per kWh from the Muaralaboh plant and at 9.5 US cent per kWh from Rajabasa. For the Rantau Dadap plant, PLN will buy the power supply at 8.86 US cent per kWh, but the power purchase agreement has not been signed.(*)