By Nova Farida
Courtesy of Supreme Energy
PT Supreme Energy has started construction process of a planned 80 MW geothermal power plant (PLTP) project in Muara Laboh, Solok Selatan Regency, West Sumatra Province.
Senior Manager for Business Relations at Supreme Energy, Ismoyo Argo said that construction activity has started since last month, while exploration drilling activities are slated to begin in May.
?Construction and drilling activities will take about 24 months since March,? he told Petromindo.com on Monday, adding that the power plant project is targeted to start producing electricity in 2019 to be sold to state-owned electricity firm PT PLN under a 30-year contract.
Ismoyo said that the company plans to drill 13 geothermal wells by deploying two rigs, the first to be carried starting May for seven wells, and the second in August for six wells.
He said that Supreme Energy has allocated around US$600 million for investment, of which $150 million will be used to finance exploration activities, and the remaining $450 million for financing construction of the power plant. Funding for the construction work has been provided via loans from Japan Bank for International Cooperation, Asian Development Bank (ADB), and leading Asian infrastructure funds.
Ismoyo said that once the first phase of the project has been completed, the company plans to proceed with the second phase with a capacity of around 140 MW.
Editing by Reiner Simanjuntak
