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Medco Energi Prepares Investment in Power Plant Project

22 May 2015 19:00 WIB

Medco Energi. TEMPO/Cheppy A. Muchlis

TEMPO.CO, Jakarta - Medco Energi Internasional is planning to invest in a gas-powered power plant (PLTG) project in West Java. The power plant, which has the ability to produce 2x800 megawatts of electricity, is expected to be fully operational in 2019.

"For the [power plant] location, we are currently looking for available land in cooperation with PLN," said Lukman Mahfoedz, Medco Energi CEO on Friday, May 22, 2015.

Currently, Medco is conducting feasibility studies in several potential locations for the power plant. However, the project will have to wait for PLN's approval.

Meanwhile, the gas that will power the power plant will be supplied by state-owned oil and gas company Pertamina. Both Pertamina and Medco have signed a head of agreement on electricity supply.

Lukman however, refused to mention the exact fund that will be allocated for the PLTG project. Lukman further said that tariffs for the electricity provided by Medco will be adjusted with a predetermined provisions made by PLN.

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