Andalas, Pertamina to speed up commercialization of marginal gas fields
Thursday, September 1 2016 - 02:56 PM WIB
Andalas Energy and Power Plc, the AIM listed Indonesian focused upstream oil and gas and power company, said it has signed an agreement with Indonesian state-owned oil and gas company PT Pertamina to establish a joint working and steering committee with the objective to fast-track commercialization of marginal gas fields within Pertamina?s acreage in Indonesia.
The company said in a statement Thursday that the execution of this agreement represents substantial progress by Andalas in the implementation of its gas-to-power strategy.
?This agreement is in line with Andalas? plan to utilize its team?s expertise and local knowledge to make a significant contribution at the local level towards fulfilling the Government of Indonesia?s goal of reducing the country?s power shortfall,? Andalas said in the statement. Indonesia is seeking to increase electricity capacity by 35,000 MW by 2019.
Andalas said the initial focus is to identify at least five stranded gas fields within Pertamina?s acreage in Riau, Jambi and South Sumatra provinces which are suitable for sub-100 MW gas-to-power development in the form of an independent power project (IPP)
The company said all target areas have an abundance of stranded gas fields that it has identified.
The company explained that all field and IPP development plans will be based on modular/mobile power plants (MPPs), a proven technology that is cost-effective, flexible, scalable and ideal for satisfying power demand at the local level in a wide range of operating environments.
Once the initial five fields have been identified both parties will sign an exclusive joint development agreement (JDA) to design, construct, fund and operate the IPPs ? suitable partners may be invited to join Pertamina and Andalas in the JDA for each development, the statement said.
?Both parties will work together to generate IPP commercialisation plans for each of the identified marginal gas fields covering all key aspects of any future investment and approval; covering project design, project cost and economic analysis and all regulatory requirements,? it added.
Editing by Reiner Simanjuntak