26 September, 2002 – The First Indonesia-China Energy Forum held this week agreed on six new projects, consisting of three natural oil and gas projects and three power projects.
The signing of the memorandum of understanding of the six projects was carried out in Nusa Dua, Bali, on Wednesday in the presence of Chairman of the State Development Planning Commission Zeng Peiyan, Minister of Energy and Mineral Resources Purnomo Yusgiantoro and Chinese Ambassador to Indonesia Lu Shumin as well as delegates of the two sides.
Meanwhile, the sales purchase agreement on the Tangguh LNG project to Fujian, China, will be signed on September 26, 2002 at the Ministry of Energy and Mineral Resources in Jakarta after both delegations met with President Megawati Soekarnoputri.
The six projects consist of the construction of a 4 x 55 MW coal-fired power plant (PLTU) in Labuhan Angin, Sibolga by China National Machinery & Equipment Import & Export Corp (CMEC), and the 2 x 50 MW Parit Baru PLTU, Pontianak, by China Machine-Building International Corp., a gas-fired power plant (PLTGU) in Palembang Timur (130 MW) by the China National Chemical Engineering-China ChengDa Chemical Eng. Co in association with PT Asrigita Prasarana, and the construction of a gas transmission pipeline from South Kalimantan to East Java covering a distance of 1,100 km, by Petrochina Company Ltd (CNPC), in addition to the development of a marginal gas field in Binjai block by Lemigas and the China Petrochemical Corp (SINOPEC) and the Ministry of Energy and Mineral Resources.
According to secretary general of the ministry of energy and mineral resources Djoko Darmono, the six projects have the highest prospects of being realized especially due to the availability of funding. The PLTU in Labuhan Angin for instance, is assured of a funding in the form of a soft loan from China amounting to $180-200m. This fund is part of a $400m commitment of China made when President Megawati visited China some time ago, he said. However, he added, the realisation of the projects eventually depends on the two sides concerned.