Andalas identifies two additional wellhead gas to power projects
Tuesday, April 25 2017 - 01:34 AM WIB
Andalas Energy and Power Plc, the AIM traded Indonesian focused energy company, said that together with partner Indonesian state-owned oil and gas firm PT Pertamina, it has identified a further two gas fields suitable for the development of wellhead power plant projects fired by gas.
?This is in line with the company?s strategy to develop a portfolio of wellhead independent power projects (IPPs) totaling between 250MW to 500MW of installed capacity fired with gas from existing fields,? Andalas said in a statement Monday, providing update on its activities with Pertamina.
The company said that both projects are located within the company?s target area of Central Sumatra where there is a significant inventory of gas fields with wellhead IPP potential.
Detailed evaluation of each project?s suitability to feed a future power project of sufficient size will commence this week with Pertamina?s sub-surface team, it added.
Following this a feasibility study will be undertaken at each new project. Joint review now being undertaken of the undeveloped gas fields in Pertamina?s inventory as well as other operators.
Andalas CEO, David Whitby, said ?We were extremely pleased by the outcome of our recent workshop and the subsequent meetings between Andalas and Pertamina. Pertamina was represented at the workshop by over 20 people from across their organization. Andalas shared its experience on the optimal way to monetize marginal gas fields through wellhead IPPs and Pertamina presented a sampling of its inventory of gas assets. The workshop continued to build on the already solid foundation of mutual cooperation and respect between our two organizations.
?The scalability of our gas-to-power offering in partnership with Pertamina is clear. In addition to the initial project, we have identified two additional fields within Pertamina?s unrivalled inventory of gas assets. All of this has been achieved within eight months of signing our partnership agreement with Pertamina and we look forward to updating shareholders as we continue to progress our cooperation with Pertamina.?
Andalas announced in February completion of a feasibility study for its first 60 MW wellhead gas to power project in partnership with Pertamina in Jambi Province of Sumatra Island.
According to the feasibility study, construction of the project would commence by the fourth quarter of 2017 with a planned completion by end of 2018.
Editing by Reiner Simanjuntak