SEB’s LoI with North Kalimantan lays groundwork to expand internationally

Torstein (third right) and Irianto (second left) shakes hands following the signing of the LoI as Awang Tengah (centre) and other officials from Sarawak Energy look on.

KUCHING: Sarawak Energy Bhd (SEB) signing a letter of intent (LoI) Tuesday night with Indonesia’s Northern Province of Kalimantan (Kaltara) lays the groundwork for the group to expand internationally.

The state-government owned utility signed a LoI with Kaltara on Wednesday night, formalising an agreement to explore partnership opportunities in power opportunities in power generation projects and strategy formulation to improve the power supply infrastructure in Kaltara.

The signing ceremony was witnessed by the Minister of Public Utilities of Sarawak, Datuk Amar Awang Tengah Ali Hasan. Signing on behalf of SEB was its group chief executive officer Datuk Torstein Dale Sjotveit while Dr. H. Irianto Lambrie, the Governor of North Kalimantan inked the agreement for the Government of North Kalimantan.

“Our tremendous development, our business achievements and active participation at regional and international energy forums are now gaining international attention and have opened doors for business expansion in the region,” Torstein said following the signing ceremony.

“We now have the opportunity to demonstrate our capabilities and capacity in managing and developing power projects outside Sarawak.”

He noted in his text speech that this also opens the door for professionals in SEB to practice their skills and knowledge outside the country.

Irianto highlighted in his speech that they would like to learn from Sarawak’s successful experience, to turn 15,000 megawatts (MW) of potential hydropower in Kaltara to become useful renewable and sustainable power energy resources.

He added that they wish to learn from Sarawak on how to develop energy mix from coal, oil and gas resources to ensure the steady supply of power.

According to Irianto, he strongly believes the cooperation agreement they signed will become the milestone for their economy in the coming years.

“North Kalimantan will become an efficient power centre of Indonesia with the support of Sarawak Energy, our dream to develop Borneo grid as part of the Asean grid will move one step further after Sarawak’s successful power transmission to west Kalimantan, and the signing of this LoI.

“This cooperation has taken place at the right crucial time, the first  year of Asean Economy area, the free flow of energy power and cooperation will become part of the Asean cooperation program,” he said.

On a side note, Torstein pointed out that as a result of their work with hydro, coal, gas and transmission, SEB has built a strong talent pool of expertise in the fields of hydro, thermal, transmission and gas.

He went on to note that SEB’s people have undertaken or are undertaking very large construction projects such as the 944MW Murum hydro project which now provides clean energy and additional capacity to the Sarawak Corridor of Renewable Energy (SCORE).

“We are in the process of constructing a new coal plant with the most modern and environmentally friendly technology in Balingian,” he underlined.

Torstein added that and SEB is also starting soon to build a new combined cycle gas power plant in Bintulu based on a long term agreement with Petroliam Nasional Bhd (Petronas) for gas supply.

SEB is also completing the 500 kilovolt (kV) Backbone transmission state infrastructure project which Torstein noted in his text speech is a vital step towards ensuring all of the group’s customers throughout the state can enjoy 24 hour electricity.

“Our projects are implemented under very stringent guidelines that bring together the best of international standards and practices while aiming to maximise local benefits. In addition, sustainability underpins our decision making process,” he added.

In January this year, SEB began exporting power to West Kalimantan. The company has developed plans with Brunei and Sabah for more interconnection projects that will advance the concept of the Asean grid.

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