Nuclear Power Not Needed in Indonesia: PLN

Jakarta Globe, Ririn Radiawati Kusuma, March 23, 2011

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State Electricity Company (PLN) says it does not need nuclear power plants — yet.

The comments follow a continued effort by the National Nuclear Energy Agency (Batan) to push for the use of nuclear energy in Indonesia despite an international backlash due to the ongoing nuclear disaster in Japan.

“Commercially, Indonesia does not need nuclear power plants yet,” PLN president director Dahlan Iskan told the Jakarta Globe on Wednesday.

He said producing nuclear energy was more expensive than producing electricity from coal and gas.

He said as well as coal and gas, which Indonesia had in abundance, other options included renewable energies, such as hydro and geothermal.

He did, however, say that it would be good for Indonesia to begin preparations for the possibility of using nuclear energy.

Batan is now focusing on the island of Batam as a proposed site for a nuclear power plant. Batam lies uncomfortably close to the major fault line that produced the 2004 Indian Ocean earthquake and tsunami.

Related Articles:

PLN Chief: We Do Not Need Nuclear Power... Yet

RI Soil Too Unstable For Nuke Power

Indonesia`s Jakarta Industrial Estate to build US$130 mln plant

Antara News, Thursday, September 30, 2010 13:53 WIB

Jakarta (ANTARA News/Asia Pulse) - PT Jakarta Industrial Estate Pulogadung (JIEP), said it would start building a 130-megawatt power plant for its own use this year.

Agus Dwitarto, the president of the company, which is owned by the Jakarta city administration, said the US$130 million project will be discussed with a number of Japanese partners next month.

The power plant will likely use gas for fuel to be supplied by state gas distributor PT Perusahaan Gas Negara (PGN, JSX:PGAS), Dwitarto said. Construction of the project will be carried out by phases with the first and second phases each with a 40-MW capacity and third phase having a capacity of 50 MW.

The project to be completed by the end of next year will guarantee power supply to all tenants of the industrial estate.

PLN to build two gas power plants in South Sumatra

The Jakarta Post | Wed, 02/17/2010 3:25 PM

State power company PT PLN plans to build two gas power plants with a total capacity of 600 megawatts (MW) in South Sumatra this year.

PLN president director Dahlan Iskan said in Jakarta on Wednesday the two power plants will be using gas from South Sumatra.

"The power plants will make use of the gas pipelines already in place there," he said as quoted by Antara news agency.

He added that the power plant in Prabumulih will have a capacity of 200 MW, and the one in Musi Rawas, 400 MW.

The power plant in Prabumulih will use 45 million standard cubic feet per day (MMSCFD) of gas from the Singa field operated by Medco EP Indonesia, and the one in Musi Rawas will be using 80 MMSCFD of gas from the Jambi Merang field run by Hess Indonesia.

"We have already signed a contract for the gas which will be supplied from March 2010," he said.

Dahlan added that PLN had decided to build the projects itself as the gas supply had been secured and it was at a relatively low price.

"We have not decided whether the procurement mechanism would be a lease, an operational cooperation, or otherwise," he said.

Indonesia to construct 93 power plants in 2nd project

The Jakarta Post, Alfian , Jakarta | Sat, 01/30/2010 12:53 PM | Business

The government has announced its list of 93 power plants to be built under the second 10,000-megawatt (MW) power generation scheme.

"With the issuance of the decree, the bidding for the power plant procurement can now be opened," J. Purwono, the director general for electricity and energy use, said Friday.

The power plants are expected to generate up to 10,153 MW in total. Of this figure, 5,770 MW or 57 percent will go into the Java - Bali grid, while the rest will go to the other islands across the archipelago.

This second project is expected to promote the use of clean and renewable energy, but coal-fired power plants will still contribute significantly.

Of the total capacity, up to 1,204 MW (12 percent) will be generated by hydroelectric plants; 1,660 MW (16 percent) from gas combined-cycle plants; 3,977 MW (39 percent) from geothermal plants, and 3,312 MW (33 percent) from coal-fired plants.

The biggest hydroelectric plant in the project will be the 4x250-MW Upper Cisokan plant in West Java.

The biggest gas combine-cycle plant will be the expanded Muara Tawar plant, also in West Java, with total capacity of 1,200 MW.

The 1,000-MW Indramayu power plant in West Java will be the biggest of the coal-fired plants in this second phase, while the Sarulla 1 plant in North Sumatra, with expected total capacity of 3x110 MW, will be the biggest of the geothermal power plants.

Of the total 10,153 MW power expected to be generated from the project, state electricity company PT PLN is expected to generate a little more than half, or 5,118 MW.

The remaining 5,035 MW is expected to come from plants run by independent power producers (IPPs).

Although set to produce an almost equal amount of electricity, the power plants to be built by the IPPs will require double the investment that PLN's plants warrant.

Constructing all the power plants will require US$15.96 billion in investment. Of this figure, only $5.90 billion will go to PLN.

The IPPs will require a greater capital outlay as they will focus on geothermal power plants, which are far more costly than PLN's coal-fired plants.

Of the total 3,977 MW set to be generated by geothermal, IPPs are expected to contribute 3,097 MW.

The second 10,000-MW project will include the construction of 3,490 kilometers of power transmission lines, requiring $383 million in investment.

The project is expected to be finished in 2014.

Indonesia Sweetens Deal for Private Power Companies

Jakarta Globe, Janeman Latul

A pre-paid electricity customer topping up his account. The government wants independent power producers to build most of the new power plants in the second phase of its “fast-track” electricity project. (Antara Photo)

The government will scrap import duties on equipment needed to build power plants to encourage independent companies to build plants in the second phase of its “fast-track” electricity generating program.

A presidential decree to this effect, obtained by the Jakarta Globe on Thursday, was signed last week.

“The construction of power plants will be exempt from import duties and enjoy other facilities that will be regulated by the Finance Ministry,” the decree said.

However, one private sector energy firm interested in participating in the fast-track program said the government would need to offer more incentives to independent producers if it wanted them to build plants in the second phase of the program.

The ambitious $15.6 billion program calls for the construction of 82 new coal-fired, geothermal, hydroelectric, and natural gas-fired power plants across the country to alleviate chronic power shortages, with the plants expected to come online between 2013 and 2015.

The government hopes to entice independent producers to build the majority of the plants — 58 — and supply a total capacity of 4,262 megawatts of power. Many of the plants to be built by independent producers would be in remote, sparsely populated areas.

PLN will build the remaining 24 plants with a combined capacity of 6,415 MW.

Erwin Aksa, president director of PT Bosowa, a diversified business conglomerate involved in the energy sector, said that while he welcomed the presidential decree it was unlikely to be enough to encourage independent producers to get more involved in the sector.

“It’s a good start, but the power producers need more certainty because we’re not the only country in Asia that is trying to attract investors to infrastructure projects,” Erwin said. “Investors would first be looking to see whether our project offers a better return than in other countries. Incentives, including tax breaks and guarantees on land acquisitions, should also be included in the decree, to make the policy comprehensive and attractive.”

The decree also guaranteed that PLN would purchase electricity from independent producers involved in the “fast-track” program, with the details to be issued later by the Finance Ministry.

Currently, state electricity company PT Perusahaan Listrik Negara’s generating capacity is only sufficient to supply about 60 percent of national demand for electricity.

PLN buys electricity from private producers to partially meet the shortfall.

Independent producers have only recently been allowed to supply PLN with power. Previously, they were only permitted to supply large industrial users with factories located near their plants.

Jacobus Purwono, the Energy Ministry’s director general of electricity and energy utilization, said on Wednesday that the government planned to subsidize the cost of power PLN bought from private producers.

Currently, government subsidies on electricity force PLN to sell power at as little as 40 percent of production costs, and it has often demanded equally low prices from independent producers.

Low electricity prices and a lack of government guarantees on projects have scared many investors away from “fast-track” projects.

In the first phase of the “fast-track” program, which is still ongoing, PLN is building 14 new coal-fired plants.

PLN to tender 3 new projects

Nani Afrida , The Jakarta Post , Jakarta | Mon, 11/23/2009 10:39 PM

State electricity producer PT PLN on Monday revealed it would hold put three new electricity projects to tender, to be financed by export credit.

The projects are to install submarine cable in Bali; to empower network and electricity distribution in Jakarta and to upgrade the capacity of the Muara Tawar add-on gas and coal-fired power plant (PLTGU) in Bekasi, West Java.

“We will hold a tender for these projects,” PLN planning and technology director Bambang Praptono told reporters at the House of Representatives in Jakarta on Monday.

The submarine cable project is worth US$60 million (Rp 6 trillion), while the projects in Jakarta and West Java are worth $300 million and $1 billion.

Bambang said several foreign financing institutions had voiced interest in the projects already. The institutions are the Japan Bank for International Corporation (JBIC), the Japan International Coorperation Agency (JICA) and German Bank, KfW.

Funding for the projects would be taken from export loans and PLN's internal budget, Bambang said.

“For example, the Muara Tawar project requires $1 billion, so it will take $850 million from export loans and $150 million from PLN,” he said.

PLN to tender 4 power plants under 2nd crash program

Alfian , The Jakarta Post, Jakarta | Fri, 11/20/2009 1:05 PM

State utility company PT PLN plans to open tenders for construction of four power plants with the total capacity of 1,648 megawatt (MW) next year, a director said.

"All the power plants are included in the second phase 10,000 MW electricity crash program. We expect to open the tender for the construction in 2010," PLN's planning and technology director Bambang Praptono told reporters Thursday.

The four power plants are: the 1,000 MW Cisokan power plant in West Java; the 2x100 MW New North Sumatra power plant in North Sumatra; the 2x174 MW Asahan III power plant in North Sumatra; and the 2x50 MW Parit Baru power plant in West Kalimantan, he added.

Bambang said the construction of these power plants would require as much as US$1 billion for the Cisokan power plant; $500 million for the New North Sumatera power plant; $300 million for the Asahan III power plant; and $250 million for the Parit Baru plant.

"As for the Cisokan power plant, we have got a $1 billion loan commitment from World Bank. We will open the tender for its construction next year and the power plant is expected to be on stream between 2013 and 2014," Bambang said.

The remaining projects may be financed by Japan International Cooperation Agency (JICA) and by a consortium of banks from China, he added.

The government launched the first 10,000 MW power project in 2006, in a bid to anticipate increasing demand for electricity, which has been growing by at least 7 percent annually.

The second phase 10,000 MW program is being planned now and is scheduled to be implemented between 2010 and 2014.

In a presentation in August, PLN said the projects under the program were expected to generate a total electricity capacity of 10,580 MW. Of this capacity, 5,685 MW will be located in Java and the remaining 4,895 MW will be outside Java.

The construction of the power plants under the project will require $10 billion, PLN's president director Fahmi Mochtar said Oct. 20.

Bambang said that one of the power plants under the second 10,000 MW project, the 120 MW Lahendong IV geothermal power plant in North Sulawesi, has already secured a financing commitment and has selected the engineering, procurement, and construction (EPC) contractor.

The $30 million power plant will be financed by a loan from Asian Development Bank (ADB), while its EPC will be done by Sumitomo.

Under the second crash program, it is proposed that 12 percent of the power generated will be generated by hydro plants, 48 percent from geothermal plants, and 14 percent from gas plants, and the remaining 26 percent from coal fired plants.

Under the first 10,000 MW program, all the proposed power plants were coal-fired.

New power plants for S. Sulawesi

Andi Hajramurni, The Jakarta Post, Makassar | Sat, 01/10/2009 10:19 AM  

South Sulawesi residents could soon have a reliable electricity supply and see an end to the LPG shortage, after an Australian energy firm said it would increase its investment in the province by building two power plants and an LNG plant. 

Energy World Corporation Ltd, which owns PT Energy Equity Epic Sengkang and PT South Sulawesi LNG, will build two 60-megawatt power plants and an LNG plant, said Stewart W.G. Elliot, the company's managing director and CEO, after meeting Thursday with South Sulawesi Governor Syahrul Yasin Limpo. 

Also in attendance was PT South Sulawesi LNG director of general affairs, Priandika Permana. 

PT Energy Equity Epic Sengkang has already built two gas-fired power plants in Sengkang with capacities of 135 MW and 60 MW. 

"We will build two more power 60-MW plants, bringing the total electricity generated to 315 MW," Elliott said. 

The company will invest US$140 million in the two additional power plants. One is due for completion this year, while the other will be finished in 2010. 

South Sulawesi is currently in the grip of an acute electricity crisis, with the Bakaru hydroelectric plant not generating to maximum capacity because of low water levels, resulting in rotating blackouts amid high electricity demand. 

The company will also build an LNG plant in Keera, Wajo regency, 20 kilometers from its gas exploration area, for the gas-fired power plants. 

The LNG plant is scheduled for completion in 2010 and should be operational by 2011. 

"We have ordered all the equipment for the construction. Once the location has been cleared, we can start the construction," Elliott said. 

The LNG plant, to be built on 35 hectares of land near Bone Bay and the nearby port, will cost an estimated $500 million, paid for in full by Energy World. The construction will be done by South Sulawesi LNG. 

Priandika said the plant would have an annual capacity of between 2 and 5 million metric tons, to be shipped to Bali and Java. He added export possibilities were also being studied. 

Governor Syahrul requested the company sell LPG directly to residents in the province to help ease the LPG shortage. 

"When we get the LNG plant in our province, the residents should be prioritized before the gas is shipped to other provinces or exported," he said. 

Elliott said he agreed with Syahrul's request as long as there was approval from the oil and gas regulatory body (BP Migas) and state-owned power firm PT PLN. 

He also said the company would recommend PLN use gas rather than diesel to fuel its power plants.

New power plants to be built next year

The Jakarta Post

Antara, Jakarta | Thu, 05/15/2008 3:25 PM 

The government is set to build a new 10,000 MW-capacity power plant next year in order to meet increasing electricity consumption nationwide, Energy and Mineral Resources Minister Purnomo Yusgiantoro said Thursday. 

He said the construction was part of a two-phase 20,000 MW- capacity power development plan to meet the rising demand for power resources. 

"Power consumption continues to increase on Java and on the outer islands," Purnomo said. 

He said all of the new plants would be located on Java and that they would be powered by a mixture of coal, geothermal and natural gas. 

Two coal-generated plants, one with a 7,000 MW capacity and the other with a 3,000 MW capacity, have already been built during the first phase of development.

Sumatra to have new power plant

PALEMBANG, South Sumatra (Jakarta Post): PT Sarana Pembangunan Palembang Jaya, an administration-owned company, will build a gas-fired power plant with a capacity of 20 megawatts at an investment commitment of about US$16 million.

Company director Bahder Johan said Friday five local investors had shown interest in funding the plant and on completion it would be able to provide electricity to a predicted 14,000 households.

He said Sarana had developed a partnership with state-owned electricity company PT PLN for the distribution of its electricity output.

The power plant would be built at an 8,000-square-meter plot of land in Boom Baru 3 Ilir sub-district, Palembang.

General manager of PLN's Palembang office Dodoh Rahmat said despite additional electricity from the company, PLN could not guarantee no blackouts due to a lack of electricity supply in the region.

Jambi has 500 million tons of exploitable coal deposits

Jambi (ANTARA News) - Jambi`s calculated and exploitable coal potential with calories of 4,500 to 5,400 kkal/kg reached 500 million tons.

This vast energy potential needs to be exploited and used for economic development, especially electric energy generation, Jambi Governor H Zulkifli Nurdin said here on Friday.

Jambi is still facing a power shortage for industrial development and enhancing the welfare of the people.

The local administration, he added, is also expected to lure investors interested in building coal-fired power plants in the region, which would accelerate economic development.

Building power plants in the entrance of prospective coal mines would also open up employment to many people, he added.

All these deserve serious thoughts and considerations, especially within the context of seeking alternative fuels, as prices of fuel oils have been constantly increasing.

Jambi is currently building a hydro-electric power plant (PLTA) in Kerinci, and a gas-fired power plant (PLTG) in Tanjab Barat, and still considering building a coal-fired power plant (PLTU) in the region.

PGN in talks to buy gas from ConocoPhillips

Ika Krismantari, The Jakarta Post, Jakarta

State-gas distributor Perusahaan Gas Negara (PGN) hopes to buy natural gas from ConocoPhillips' gas field in Grissik, South Sumatra, following the termination of the company's gas supply contract with Singaporean buyers.

PGN president director Sutikno said Wednesday the company was currently negotiating with ConocoPhillips and the Upstream Oil and Gas Regulatory Agency (BP Migas) to buy gas from the Grissik field.

He said the company offered to buy the gas from ConocoPhillips for between US$3.8 and $4 per million cubic feet per day, with no response so far.

Sutikno said the company planned to sell the gas to a Batam power company, which was currently suffering a gas deficit of 40 million cubic feet per day.

The government terminated the gas export contract with Singaporean firm Island Power (IP) in June, after the company failed to secure a pipeline connection with another Singaporean company, Gas Supply Pte. Ltd. (GSPL), a subsidiary of Temasek Holdings, within a period of time given by the government.

Under the agreement between the government and IP, Indonesia was to deliver 110 million standard cubic feet per day of gas to IP, over a period of 13 years ending 2014.

Under the plan, the gas from ConocoPhillips' gas field in Grissik would be transmitted via a 470-kilometer pipeline across Batam.

At present, Singapore still receives gas from ConocoPhillips and its partners' fields in Natuna. Like Singapore, Malaysia also has a contract for the supply of gas from the Natuna field. This contract runs for 20 years up until 2020.

BPMigas deputy chairman for marketing and finance Eddy Purwanto said in addition to PGN, several companies expressed an interest in buying gas from the Grissik field.

"We are still discussing it. We will see who makes the best offer," Eddy said to reporters after signing an anti-corruption pact with BPMigas executives.

Meanwhile, a subsidiary of the country's largest publicly traded oil company, PT Medco Energy Internasional, has agreed to sell natural gas (around 110 million cubic feet per day) to state-owned fertilizer producer Pupuk Iskandar Muda (PIM).

The gas would go to PIM's fertilizer plant in Nanggroe Aceh Darussalam under a seven-year contract beginning 2010.

Upstream Oil and Gas Regulatory Agency's chairman Kardaya Warnika on Tuesday said PT Medco Exploration and Production (E&P) would sell the gas to PIM at a price of US$5 per million British thermal unit (mmbtu).

He said the deal also included an agreement to raise the price, should the price of fertilizer in the global market exceeded $360 per ton.

PIM has been unable to operate to full capacity for the last three years due to the gas shortage.

PLN to turn more to gas, coal next year

Ika Krismantari, The Jakarta Post, Jakarta

State-owned electricity firm PT PLN plans to cut the 2008 consumption of oil-based fuels by its power plants by 22 percent to seven million kiloliters (kl), down from this year's estimate of 9 million kl, as part of its efforts to switch to gas and coal.

President commissioner Alhilal Hamdi told The Jakarta Post recently that the firm hoped to cut its oil consumption as a number of new coal and gas-fired power plants came on line from the start of next year.

This year alone, the company has targeted to cut its fuel costs by Rp 9 trillion (US$957 million) to Rp 42 trillion from last year's Rp 51 trillion with the opening of three new coal and gas-fired power plants.

"We will also cut fuel expenditure by starting to switch to marine fuel oil, which is cheaper to replace than the high speed diesel (HSD) we used to use," PLN president director Eddie Widiono said.

Currently, 24 percent of PLN's power plants are fired by oil-based fuels.

The switch to other alternative fuels is expected to boost the company's profits this year.

PLN has been in the red for the past eight years.

"That's why we have partially switched from oil to coal, which is much cheaper," Alhilal said, adding that PLN's coal purchases would increase to Rp 8 trillion this year from Rp 6.4 trillion last year.

If the trend continues, lower production costs mean PLN is expected to post a Rp 3.8 trillion (US$422 million) net profit this year, Alhilal said.

The company's losses dropped by 58 percent in the fist six months of this year to Rp 967 billion (US$100 million) in the first half of this year, down from Rp 2.26 trillion in the same period last year.

The operation of new coal-fired power plants helped PLN to considerably reduce its losses to Rp 1.08 trillion in 2006, down from Rp 4.92 trillion in 2005.

Under the so-called "crash program", PLN plans to build a number of coal-fired power plants to provide an additional power supply of 10,000 megawatts by the end of 2009.

The operation of more coal-fired power plants is expected to further cut the company's operation costs in coming years.

Indonesia`s PLN says Mitsubishi wins power plant expansion

Jakarta (ANTARA News) - Indonesia's biggest power producer PT Perusahaan Listrik Negara (PLN) said Wednesday it has selected Mitsubishi Corp. as the winner of a project to double power generating capacity at its Muara Karang gas-fired power plant.

The project will see generating capacity increase to 720 megawatts.

PLN deputy director Tonny Agus Mulyantono told Thomson Financial the project may cost around 430 million US dollars.

He said Mitsubishi Corp beat out other bidders such as Siemens AG and Mitsui & Co, adding that the Japanese company will co-operate with other businesses for the project including Mitsubishi Heavy Industries, Sumitomo Corp. and Truba Jurong.

Bali to commence thermal power plant development

Denpasar, Bali (ANTARA News) - Bali province is expected to begin the development of a 400-MW thermal power plant (PLTU) around Celukan Bawang port, Beleleng district, in an effort to anticipate power crisis in the tourist resort island.

"The thermal power plant is expected to commence operation in stages in 2008," Public Relations Coordinator of state-owned electricity company PLN, Hendra Saleh said here on Thursday.

He said that the development of the power plant would be done in cooperation with investors and was expected to meet the need for electricity supply of Bali until five to ten years to come.

The PLTU plant will use coal to fire electricity generator so that its operational cost could be lower than other plants in Bali which so far used diesel oil, he said.

He said that the construction of the additional power plant was expected to be completed in 2009. "With additional 400MW, the need for power supply in Bali would be met until five to ten years to come," Saleh said.

So far Bali has been supplied with 580 MW of power supplies, consisting of 200 MW from Java, 130 MW from Gilimanuk power generators, 120 MW from the Pesanggaran diesel power plant and 80 MW from the Pemaron gas-fired plant.

President Susilo Bambang Yudhoyono recently asked PLN to improve its performance by increasing its electricity supply capacity to 10,000 Megawatt over the next four years.

He said Indonesia needed many more power plants so that PLN had to raise its electricity supply capacity to 10,000 Megawatt in the next three or four years.

The president told PLN to do it jointly with other parties.

He said the construction of power plants should not be done in only one or two cities or islands but across the country.

Korean firms in Pertamina deal

Ika Krismantari, The Jakarta Post, Jakarta

State-run Korea National Oil Corporation (KNOC) and SK Corp. are to sign a memorandum of understanding (MoU) Tuesday on oil and gas exploration and production with Indonesia's national oil and gas firm, Pertamina.

The three companies will collaborate on oil and gas exploration and production both in Indonesia and other countries, KNOC exploration manager Sukyeon Hwang told The Jakarta Post following a meeting with senior officials from the Energy and Mineral Resources Ministry on Monday.

The meeting was only one of many to be held during a three-day visit by a South Korean business delegation, which comprises 190 senior executives representing major South Korean companies. They will be in Jakarta until Wednesday.

During Monday's meeting, another Korean energy firm, E1, said it would form a joint venture with Pertamina to build an LPG (Liquefied Petroleum Gas) plant in South Sumatra.

E1 representative Moon Soo Dong said the plant would have a designed capacity of 350 million cubic feet a day, and would cost about US$155 million to build.

He also said construction of the plant would begin in 2008, and that it was expected to commence commercial operations in the first half of 2010.

In the electricity sector, Korea Electric Power Corp. (Kepco) said that it agreed with state-owned electricity firm PLN to build a gas-fired power plant in Bojonegara, Banten, with an installed capacity of 750 megawatts (MW).

The plant is scheduled for completion between 2009 and 2010.

During the meeting, the world's largest LNG importer, Korea Gas (Kogas), said it was interested in taking part in the construction of a third train (processing unit) at the LNG plant in Tangguh, Papua.

The Tangguh LNG plant, owned by a BP Indonesia-led consortium, takes gas from a field that contains proven reserves of more than 14 trillion cubic feet. Trains I and II are currently in the final stages of construction. Based on existing contracts, Tangguh will deliver most of its LNG to South Korean firms Posco and SK Power.

According to a Kogas executive, who requested anonymity, the plan to invest in the Tangguh plant was part of the company's strategy to secure future LNG supplies from the plant.

Of the total of 24.6 million tons of LNG that South Korea imports every year, Kogas imports 5.3 million tons from Indonesia.

The company also expressed its interest in participating in the development of the country's gas fields by announcing its plan to take part in the next government tender for oil and gas blocks.

Seven gas contracts worth $3.1 billion signed

JAKARTA (Antara): The Indonesian Implementing Body of Oil and Gas (BP Migas) signed Wednesday seven gas contracts with a total volume of 738.52 trillion British thermal units worth US$3.1billion.

The gas would be used to supply power plant, fertilizer firms, oil refinery and other industries.

BP Migas head Kardaya Warnika said the gas contracts were necessary to maintain the availability of gas at home.

"300 trillion Btu would be used by power plants, the rest will be for fertilizer firms, oil refineries, and other industries in West Java," he said.

The seven gas buyers are PLN (343.4 trillion Btu), Balikpapan refinery (65 trillion Btu), Pupuk Sriwijaya (326.03 trillion btu), Titis Sampurna (2.19 trillion Btu), Pertiwi Nusantara Resources (0.5 trillion Btu), and Energi Kompresindo (0.7 trillion Btu).

Black & Veatch to expand Indralaya power plant in Indonesia

Overland Park-based engineering giant Black & Veatch has been awarded a contract to provide engineering, procurement and construction services for the expansion of the natural gas-fired Indralaya power plant in Indonesia. The increased plant capacity will provide needed power supplies to the South Sumatra power grid.

The Indralaya plant is owned by PT PLN, the Indonesia state electricity company. When the expanded plant goes into commercial operation in mid-2008, the plant's output will be increased from 84 megawatts to 124 megawatts of electricity. This is enough energy to power more than 160,000 homes.

Black & Veatch's work involves the addition of heat recovery steam generators and a steam turbine generator for conversion of two gas turbines to combined cycle operations. Combined cycle plants use both natural gas and steam turbine cycles to produce electricity with high efficiency and lower air emissions.