Bali. Medco Power Indonesia, a subsidiary of Indonesia’s largest listed oil and gas firm Medco Internasional, signed two power-purchase agreements on Monday with utility firm Perusahaan Listrik Negara.
The first agreement states that Medco Power, through its subsidiary Energi Listrik Batam, will build and operate a gas-fired power plant in Batam, Riau Island in which the electricity will be sold to PLN. The plant will consist of two 35 megawatt generators.
The contract, which has a 20-year term, obliges PLN to pay 2.81 cents per kilowatt hour to Medco, excluding payment for a gas fuel component.
The plant, located in the Tanjung Uncang industrial area, will begin operations in 2014 and has an option to increase the capacity to 110 megawatts.