PLN opening tender for supply of high-speed diesel oil

Jakarta (ANTARA News) - State-owned electricity company PLN is opening another tender for the supply of one million kiloliters of high-speed diesel (HSD) oil per annum for the 2008-2010 period.

PLN needs the HSD oil to operate power generating plants in Belawan (N Sumatra), Grati (East Java), Tanjung Batu (East Kalimantan) and Pontianak (West Kalimantan), the company`s power generation and primary energy director, Ali Herman Ibrahim, said here Wednesday.

"The tender`s winner will have the opportunity to be assigned to supply diesel oil for two more years (after 2010)," Ali Herman said.

He said the tender winner was expected to sign a contract with PLN by April next year, adding that interested parties could obtain auction forms between December 27, 2007 and January 9, 2008.

Companies interested in taking part in the tender would be required to guarantee their ability to supply 100,000 to one million kiloliters of HSD per annum from refineries either at home or abroad.

So far, PLN`s need for diesel oil was being met by only one company, namely state-owned oil company Pertamina.

PLN needs some nine million kiloliters of HSD oil and marine fuel oil (MFO) every year.

PLN held a similar tender late last year. A number of companies then expressed their interest such as PT Aneka Kimia Raya, PT Elnusa Petrofin (a subsidiary of Shell), PT Krida Petra Graha (a subsidiary of PT Petronas Wiraniaga Usaha) and PT Sigma Bangun Persada (a subsidiary of Gulf).

The location of PLN`s power generating plants at the time were among others Grati, Gresik Muara Karang, Muara Tawar and Tanjung Priok.

But PLN had up to now not yet named the winner of last year`s tender.