Medco to produce more power for PLN

Medco Power will build and operate a gas-fired power plant in Batam, Riau Island and sell the electricity produced to Perusahaan Listrik Negara. 

The plant will consist of two 35 megawatt generators.

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.

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.

“Medco will invest about $70 million for the power plant construction and another $50 million for a 28-kilometer underwater pipeline that will connect the West Natuna gas block to Batam,” said Medco Power’s president director Fazil E. Alfitri.

Medco will also increase the capacity of its gas-fired power plant in Batam to 85 megawatts from 55 megawatts, with PLN  purchasing the electricity for 20 years after the expansion is complete in 2014.

It is an extension from the exisisting 12-year contract which was set to expire in 2016.

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