The development of the Sengkang Power Plant and Kampung Baru Gas Field will greatly assist economic development in South Sulawesi and is consistent with the Goverment's objective of further developing Eastern Indonesia


The Sengkang Power Project

Sengkang Power PlantThe Sengkang Power Project is based on a Power Purchase Agreement signed with PLN in April 1996.
The Project consists of the following components:

  1. The construction and operation ofan 85 my Open Cycle Power Plant. The Sengkang Open Cycle Power Plant has completed and commissioned in September 1997 and commercial operations commenced on 27 September 1997.
  2. The construction and operation of the additional 50 my capacity Heat Recovery Steam Generators and Steam Turbine generator unit which gave a total 135 my Combined Cycle Power Plant. The Combined Cycle Plant commenced commercial operations on 12 September 1998.
  3. The financing, construction and hand over to PLN (Build and Transfer) of a 35 kilometer 150 KV Transmission Line from Sengkang to Soppeng anda High Voltage Switchyard at Sengkang. Thefacilities were handed over in March 1998.

The Sengkang Power Project represented an investment of US$ 225 million. The Power Plant is located nearby the Village of Patila in the Region of Wajo, South Sulawesi.

The Sengkang Power Plant, Stage 1 Open Cycle 85 MW and Stage 2 Combined Cycle 135 MW was developed to match the growth in demand for electricity in South Sulawesi. This is the equivalent of up to 50% of the current electricity generation needs and approximately 40% of future needs for the next 5 years. The availability of a clean, efficient and reliable source of electricity generation at Sengkang will support economic development and industrial growth in the Region and in South Sulawesi.
PT Energi Sengkang has subsequently agreed with PLN to finance construct and operate an additional gas turbine generator of 60 MW capacity (total Sengkang Power Generating Complex will be 195 MW) during the period 2003 to 2005 in order to meet the increased demand for electricity This will require an additional investment of approximately US$ 45 million.

The Sengkang Power Project will be beneficial to the Government, PLN, and the economy and people of South Sulawesi for the following reasons:

  • The utilization of natural gas as an indigenous fuel will reduce the reliance on crude oil products for electricity generation, lower the cost of fuel for electricity generation and make use of an environmentally clean fuel.
  • It will provide an efficient and reliable Power Plant for electricity generation to meet current and future electricity needs in South Sulawesi.
  • Private investment in the Project will reduce the need for capital investment and borrowing by PLN for electricity generation.
  • The Project has and will provide employment for Indonesian nationals during the construction and operation phases.
  • The Project provides training and technology transfer to national personnel.
  • The construction and transfer of the 150 KV Transmission Line and Switchyard to PLN expand the PLN Grid and permit the improvement in electricity distribution in Sengkang and the surrounding areas.
  • The additional reliable generating capacity from the Sengkang Power Plant supports economic and industrial development in the Region and South Sulawesi.

PT Energi Sengkang is a responsible developer and neighbour. The Power Plant is constructed to international environmental and safety standards and an ongoing community relations program has been planned and is being implemented.

 


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