JAKARTA (Rambu Energy) – Korea Electric Power Corp. (KEPCO), coal company PT Moa Maju Kurnia Utama and Essential Strategic Group Ltd, an investment arm of heavy equipment supplier PT Trakindo Utama, have signed an agreement to jointly develop a synthetic natural gas (SNG) power plant.
Korea’s news agency Yonhap reported that the SNG plant will produce an annual 1.1 million tons of the energy source.
SNG is a type of fuel gas that can be extracted from fossil fuels, coal and oil shale.
KEPCO expects to spend some 3 trillion won (US$2.84 billion) for the whole project development. KEPCO said it plans to sell the extracted gas to the Indonesian domestic market from 2020.
Moa Maju Kurnia Utama is a coal company based in Bulungan, Kutai Timur Regency, East Kalimantan province. PT Trakindo Utama is found by Achmad Hamami, one of Indonesia’s richest businessmen. (*)