Pertamina Geothermal Energy held a kick-off meeting to start exploration work for the Lumut Balai Unit 4 geothermal power project in Sumatra, Indonesia.
PT Pertamina Geothermal Energy (PGEO) held a kick-off meeting to signal the start of exploration activities for the 55-MW Lumut Balai Unit 4 geothermal power plant in South, Sumatra, Indonesia. The latest addition to the Lumut Balai operational field is targeting commercial operations by 2032.
The planned activites include the construction of supporting infrastructure, drilling of three exploration wells, production testing, and obtaining a Notice of Resource Confirmation. According to PGEO Corporate Secretary Kitty Andhora, the state-owned developer is investing $32.21 million for this phase of project development.
The announcement is a massive vote of confidence on the geothermal resource in the Lumut Balai field, which generated electricity for the first time in 2019. A 55-MW Unit 2 expansion then came online in 2025. Just in early 2026, PGEO also announced the start of well pad construction for the 55-MW Lumut Balai Unit 3 power plant. The Unit 3 power plant is expected to be operational by 2030.
The development of a Unit 4 power plant has been supported by geoscientific studies and reservoir simulations of the existing geothermal reserves. Furthermore, PGEO Director of Exploration & Development Edwil Suzandi states the drilling location is around the main upflow zone of the field and has high permeability characteristics.
Director of Operations Andi Joko Nugroho adds that the project is further supported by a Power Purchase Agreement with an escalation scheme. The project annual growth of electricity demand in South Sumatra further strengthens the commercial case for Lumut Balai Unit 4.
Lumut Balai Unit 4 had also been included in the 2025-2029 Blue Book of the Ministry of National Development Planning (PPN / Bappenas), which means that the project is eligible to receive foreign funding through concessional loan schemes.
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