Bukit Asam to supply more coal to state power firm PLN
Alfian, The Jakarta Post, Jakarta | Fri, 09/17/2010 10:27 AM
State coal producer PT Bukit Asam (PTBA) will increase its coal supply to state power firm PLN by up to 14.4 million tons a year, the company’s president director Sukrisno told reporters Thursday.
PTBA now supplies about 8.1 million tons of coal per year to PLN.
Sukrisno said the additional supply would be delivered immediately after an MoU was signed on Sept. 23.
PLN’s primary energy director Nur Pamudji said the additional coal supply from PTBA would be used by PLN to supply several of its power plants in Sumatra and Java. These are part of the government’s first phase of its electricity fast track program. Under this program, the government expects to generate additional power of about 10,000 megawatts (MW) from coal-fired power plants in 37 locations.
Nur Pamudji said that the power plants under the program would need 30 million tons a year. PLN has actually secured coal supply agreements for the program, but, based on the latest evaluation in April, PLN found that seven mines were not yet ready to supply coal.
“We see no development progress in the seven mines,” Nur Pamudji.
The seven mines were initially expected to contribute as much as 16 million tons coal to the program, meaning that the 10,000 MW program power plants could face coal shortages of up to 16 million tons a year.
In May, PLN conducted a tender seeking supply for a further 6 million tons coal per year for six years. Nur Pamudji said PLN was in the process of finalizing selection of the tender winners.
He added that seven other coal companies holding coal contracts of work, locally known as PKP2Bs, had also agreed to supply the shortfall in volume to PLN, Nur Pamudji refused to mention the seven firms, saying this was not finalized yet.
In its 2010-2019 electricity provision plan, PLN estimates that Indonesia’s electricity production system will need 38.23 million tons coal to fuel both PLN and private firms’ power plants in 2010. This volume is estimated to increase to 48.91 million tons by 2011.
PLN says coal will be the backbone for production for the country’s power system for at least the next 10 years.
