Toba Sejahtra?s power unit signs PPA with PLN

PT Kartanegara Energi Perkasa (KEP), a majority-owned power unit of PT Toba Sejahtra, has signed power purchase agreement (PPA) with state owned electricity firm PT Perusahaan Listrik Negara (PLN) Persero for the 2 x 41 MW Senipah gas-fired power plant in Kutai Kartanegara regency, East Kalimantan.

The PPA was signed by PLN's president director Dahlan Iskan and Bambang Irawan, who represented KEP, on Monday (April, 18, 2011) in Jakarta.

KEP will sell electricity to PLN at the price of 6.5 cent per kWh, a Toba Sejahtra?s senior official told Petromindo.Com on Wednesday.

The construction of the project is expected to start soon with commercial operation date (COD) scheduled for Q2-Q3 2012, the official said.

Kutai Kertanegara regency-owned firm has a 10 percent stake in KEP and the remaining held by PT Toba Sejahtra.

In May 2009, French firm Total E&P Indonesie signed a gas sale contract amendment with the energy firm owned by East Kalimantan?s Kutai Kertanegara regency administration for the supply of gas to the power plant to be built in Senipah. Total will supply a total of 146 TBTU of gas over a period of 20 years. (denny)