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Tuesday, 01 September 09
INDONESIA PLN SECURES 1.9 MILLION TONNES COAL FOR NEW POWER PLANT


Reuters reported that Indonesia's state electricity firm PT Perusahaan Listrik Negara has secured 1.9 million tonnes of sub bituminous coal per year for its new coal fired power plant in Central Java.

Mr Pudji Widodo head of coal energy unit of PLN said that PT Arutmin a unit of Indonesia's largest coal producer PT Bumi Resources Tbk and PT Titan Mining Energy will each supply 950,000 tonnes of coal per year to Rembang power plant which has generating capacity of 630 MW. He said that "First coal delivery started this week. They will supply the coal for 20 years."

PLN bought sub bituminous coal of 4,200 kcal per kilogram gross as received at IDR 389,000 per tonne on cost insurance and freight basis.

Rembang power plant is one of 35 new coal ired power plants being built under the government's crash program to add 10,000 MW of generating capacity and ease chronic power shortages. 3 new coal fired power plants with total generating capacity of 1,960 MW are expected to start commercial operations later this year including Rembang which is expected to start in October.

PLN needs a total of 31.9 million tonnes of coal a year for the new coal fired power plants and has secured 15.3 million tonnes of coal. It was also in the process of signing contracts for a further 13.2 million tonnes and is tendering for 3.26 million tonnes of sub bituminous coal supply.

The government is currently drafting for the second program which will add another 10,000 MW capacity from coal and renewable energy. PLN has a monopoly in Indonesia and operates 25,000 MW of capacity but most of its plants are old and output is far below capacity. PLN is under pressure to ramp up capacity and modernize its plants. It has switched to natural gas and coal to meet demand and cut consumption of crude oil.
Source: Steel Guru



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