Mulut Tambang power station

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Mulut Tambang power station (also known as South Sumatra 9, Sumsel-9, or SS-9) is a proposed 1,200-megawatt (MW) mine-mouth coal power plant in South Sumatra Province, Indonesia.

Location

The map below shows the location of Rawas Ilir District, the approximate location where the plant will be built, in Musi Rawas Regency, South Sumatra Province.

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Background

In March 2006, Indonesia Energy Minister Purnomo Yusgiantoro announced that PLN was planning to build a two-unit, 1,200-MW, $2 billion mine-mouth coal-fired power plant in Rawas Ilir District. PLN signed a memorandum of understanding with Sojitz, coal miner PT Triaryani, and AES Transpower for the construction of the plant. Completion was then scheduled for 2010.[1]

In early 2012, PLN was planning to begin the tender process for Mulut Tambang plant in June 2012, with the plant going online in 2016.[2] In July 2012, PLN hired HSBC as transaction advisor for both this project and for the Sumsel-10 power station.[3]

As of January 2015, PLN was still working on signing tender contracts with coal suppliers for this plant and Sumsel-10. PLN has been criticized for the way that it has run this tender process.[4][5]

In February 2015, the Indonesian government allocated 70 trillion Rupiah (about $1.1 billion) in funds for this project and Sumsel-10. A spokesperson from the Ministry of Finance stated that the plant would be tendered in 2015, funds would be disbursed in 2016, and the plant would be completed by 2020. Since the plant would be a mine-mouth plant, land acquisition is not necessary.[6]

In April 2015, PLN's Director of Procurement Amin Subekti said it will ask for bids in mid-May and will then evaluate bids for two months to determine a winner. At that point, the winner will be able to seek funding.[7]

The Mulut Tambang (SS-9) power station should not be confused with the Muara Enim power station, which is described in some press reports as the "Mulut Tambang 6 power station."[8]

The PLN 2015-2024 supply plan does not show this project,[9] but the PLN 2016-2025 supply plan incorporates the project.[10]

According to IEEFA, the delay in tendering for Mulut Tambang (Sumsel-9) and Sumsel-10 power station stems from the shelving of a transmission-lines project connecting Sumatra and Java.[11]

According to the PLN 2017-2026 long range plan, Sumsel-9 and Sumsel-10 need to be reassessed due to the shelving of the Java-Sumatra HVDC Interconnection System. They will be included in the power balance of the Sumatra system, but their implementation will have to wait for the readiness of the Sumatra system to receive plants of a larger scale.[12]

In February 2018 PT Bukit Asam stated that it was interested in participating in an auction for Sumsel-10 and Sumsel-9 but that it did not know when an auction would occur.[13]

The PLN supply plans for 2018-2027 and 2019-2028 do not show this project.

Project Details

  • Sponsor: TBD
  • Parent company:
  • Location: Rawas Ilir District, Musi Rawas Regency, South Sumatra Province, Indonesia
  • Coordinates: -2.618, 103.127 (approximate)
  • Status: Shelved
  • Gross Capacity: 1,200 MW (Units 1 & 2: 600 MW)
  • Type:
  • Projected in service: Unit 1: 2020[6], Unit 2: 2021[14][10]
  • Coal Type:
  • Coal Source: Mine-mouth
  • Source of financing:

Articles and resources

References

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External resources