Update- KPC close to clinch coal supply deal from Tanjung Jati B
Friday, November 3 2006 - 05:16 AM WIB
?KPC and PLN are currently negotiating terms and condition for the contract to supply 2 million tonnes per annum of medium calorific value coal to Tanjung Jati B for 10 years. Once negotiation is settled, contract would be signed,? Afianto, general manager of Tanjung Jati B told Petromindo.Com on Friday.
Afianto said that as part of the program to cut fuel costs, Tanjung Jati B has also called for supply of low calorific coal around 1 million, to be mixed with medium CV coal. He said the mixing program would be tried for 1 year. ?If the results show satisfactory results, the program would be continued,? he said.
He said PLN is currently evaluating prospective low calorific supplier after it opened re-tender in September this year.
He decline to give names, but an industry source said that PLN is pitching East Kalimantan coal miner PT.Berau Coal for the supply.
Berau Coal marketing manager Eko Budi confirmed that the company had been declared lowest bidder for low CV coal. He said other participants are East Kalimantan coal miners PT.Anugrah Bara Kaltim and KPC. ?We?re waiting for formal announcement,? Eko said, adding that the coal will be delivered for January-June 2007 period.
Tanjung Jati B is owned by PT. Central Java Power (CJP), in which Japan trading house Sumitomo is controlling shareholder. CJP entered into a 20-year long-term lease with PLN, under which PLN will be responsible for the operation and maintenance of the power plant during the lease period.
The plant commenced operations earlier this year. (godang)