Indonesia to produce electricity for Singapore

Indonesia President Susilo Bambang Yudhoyono is not averse on building coal-fired plants to export electricity to Singapore.

He said he is "open to the idea" of building coal-fired Batam power plant to reduce Indonesia’s gas exports to Singapore, and divert the gas to local industries in Java instead.

The Indonesian government has two long-term contracts with Singapore’s SembCorp Gas and Gas Supply to supply the city with gas from fields in South Sumatra and the Riau islands through undersea pipes until 2023.

"If that [the Batam power plant] would serve as a solution, we could proceed with it," Yudhoyono said.

The plan is now being evaluated by the energy ministry.

 It generates electricity through natural gas imports from Indonesia and Malaysia.

Singapore is planning to import electricity directly as part of a larger effort to increase and diversify Singapore’s energy sources, which could include nuclear energy in the future.

Kurtubi, director at the Center for Petroleum and Energy Economic Studies, said the project, if approved by Yudhoyono, would likely get the nod from Singapore to amend existing gas sale contracts.

"Indonesia can convince Singapore that this way, they will get a very long-term supply of electricity because Indonesia has abundant coal," said Dr Kurtubi, who goes by only one name.

For the sourfce of this story, click here.