Medco finishes Panaran II plant upgrade, to add 20 MW without extra fuel
Alfian , The Jakarta Post , Jakarta | Sat, 04/03/2010 9:50 AM | Business
Indonesian energy giant PT Medco Energi Internasional has completed an upgrade of its Panarakan II power plant in Batam Island, adding 20.6 megawatts (MW) to the capacity to the gas fired power plant.
The completion of the additional combine cycle turbine generator system will increase the plant’s electricity supply from 61.5 MW to 82.1 MW, the company said in an emailed statement sent Thursday.
The statement says the combine cycle turbine generator will enable the Panaran II Power Plant to utilize steam produced by the Symple Cycle Gas Turbine Generator without the need for additional fuel (gas).
“This is a project to improve the efficiency of the power plant, as an answer to increase the power supply in Batam while using the same amount of gas,” PT Medco Power Indonesia president director Fazil E Alfirti said.
Medco Power is a subsidiary of Medco, and operates in power plants and its services business.
Medco Power operates the Panaran II power plant through its subsidiary PT Dalle Energy Batam.
Construction of the new generator system began in June 2008 and was carried out by by the Mitsui-Hyundai consortium.
The total value of the construction reached US$54.6 million and most of this was funded through project financing.
Medco Power supplies nearly 80 percent of the total electricity demand in Batam Island.
The company currently owns majority stakes in and operates three gas fired power plants in Batam.
These plants have a combined capacity of 150 MW.
Medco Power is now developing a 330 MW geothermal power plant in Sarulla, North Sumatra.
In its power plant services division, the company is operating and maintaining the 1,320 MW Tanjung Jati B coal fired power plant.
Besides Medco Power, Medco also has three other subsidiaries: PT Medco E&P Indonesia, Medco Energi Global Pte and PT Medco Downstream Indonesia.
Medco E&P Indonesia manages Medco oil and gas business operations in Indonesia, while Medco Energi Global manages the same but for international operations.
Medco Downstream manages the downstream oil and gas business including methanol, liquefied petroleum gas (LPG) and ethanol plants.
Medco’s net profit fell from US$280.2 million to US$19.2 million in 2009.
The decline was reportedly a result of the the company’s increased revenue in 2008 from the sale of all of its stakes in drilling company PT Apexindo Pratama Duta.
Medco’s oil production dropped to 35,000 barrels per day (bpd) in 2009 from 45,000 bpdin 2008.
The company’s gas production also dropped from 108.1 billion British thermal units per day (BBTUD) in 2008 to 104.3 BBTUD in 2009.