PT Supreme Energy, in talks with PT Perusahaan Listrik Negara (PLN) and the energy and mineral resources (EMR) ministry to develop the Muara Laboh phase-2 with a capacity of 65 megawatts (MW) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian power plant power producer, PT Supreme Energy, in talks with PT Perusahaan Listrik Negara (PLN) and the energy and mineral resources (EMR) ministry to develop the Muara Laboh phase-2 with a capacity of 65 megawatts (MW). This project need an investment of US$400 million and will start immediately after the completion of the negotiations.

“COD Muara Laboh Phase-1 and Phase-2 development plan represents a very strong commitment of Supreme Energy and its international partners on the development of geothermal energy in Indonesia to support the government to achieve the target energy mix by 2025, “said the president director Supramu Santosa in an official statement on Sunday (12/15).

Currently, the producer is building a 90 MW geothermal power plant project in South Sumatra. The project, produced by PT Supreme Energy Rantau Dedap (SERD) is scheduled for completion by the end of 2020. To complete this project, the unit will invest around $700 million.

While, PT Supreme Energy Muara Laboh, a joint venture of the company and Japan’ Sumitomo Corp., and French’ Engie announced the commercial operation of date geothermal power plant Phase 1 Muara Laboh located in South Solok, West Sumatra Province.

The power plant has a net capacity of 85 MW. Furthermore, the electricity will be supplied to the grid network Sumatra owned by state-owned electricity producer, PLN  to be distributed to 170,000 households.

Supreme Energy began a preliminary study of the Muara Laboh project in 2008, followed the signing of the Power Purchase Agreement (PPA) in 2012 and immediately start the exploration. The total investment for the development of phase-1 reached $580 million.

In addition, through PT Supreme Energy Rajabasa, the company is also preparing an exploration program for the Work Area Mount Rajabasa located in South Lampung regency. Exploration activities will commence immediately after the negotiations extension of PPA with PLN completed.

Both companies are a joint venture consisting of Supreme Energy, Engie and Sumitomo. While SERD is a joint venture of the company, Engie, Japan’ Marubeni Corp. and Tohoku Electric Power.

US$1=Rp14,000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com