Indonesia′s Pertamina Set to Expand Geothermal Portfolio

14 January, 2013 | Source: The Jakarta Globe

When Pertamina redefined itself last year, company officials said they wanted to pursue business opportunities beyond their traditional area of expertise — oil and gas.


Renewable energy, like the geothermal variety, is one area that greatly excited company officials.

Pertamina benefited from the country’s old regulations, which put all of Indonesia geothermal assets under its management. Though the regulation has been altered, Pertamina remains at the forefront of geothermal development in the country.

Pertamina Geothermal Energi, a subsidiary of Pertamina, announced on Saturday that it has broken ground on two geothermal projects, which would increase the country’s electricity generation capacity by 50 megawatts.

Pertamina Geothermal Energi will invest about $105 million to add another 30 megawatts to its Kamojang geothermal power plant in the Garut district of West Java, company spokesman Adiatma Sardjito said on Sunday.

The current capacity at the Kamojang geothermal plant, which has been in operation since 1982, is 200 megawatts, with four turbines already in operation.

“The power plant [expansion] is expected to commence operations in 2014,” Adiatma said.

The company also broke ground on the development of geothermal assets in Tomohon, North Sulawesi, which would supply energy to the nearby Lahendong 20-megawatt power plant owned by state utility firm Perusahaan Listrik Negara.

Adiatman said the investment cost would be around $60 million. He added that the geothermal assets have a potential to generate 300 megawatts of electricity.

Husen, director of upstream business at Pertamina, said in a statement that the company is determined to maximize the utilization of renewable energy like geothermal for electricity.

“We welcome the government’s decision to entrust us in the development of geothermal energy for the welfare of the Indonesian people,” Husen said.

Pertamina has 14 geothermal assets spread across Indonesia, with three in operation. It generates 402 megawatts of electricity from geothermal resources and has laid out an ambitious plan to generate 2,200 megawatts, or the equivalent of 100,000 barrels of oil, by 2014.

The company has no plans to open a new plant this year, Adiatma said.

“We will focus on exploration activities, engineering, procurement and construction,” he said, adding that the company has allocated Rp 2.1 trillion ($218 million) for capital expenditure.

 

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