Andalas signs agreement with PP Energi for power projects
Tuesday, July 18 2017 - 09:50 AM WIB
Andalas Energy and Power plc, the London AIM-listed Indonesia focused energy company, said that it has signed an agreement with Indonesian power company PT PP Energi (PPE), a subsidiary of IDX-listed engineering and construction firm PT PP Tbk (PTPP), to jointly develop gas fired power facilities in Indonesia.
?The agreement is a significant milestone for the company because it builds on Andalas? existing business with Pertamina, and PTPP and PPE have the capability to bring significant complementary experience and resources to joint projects,? Andalas said in a statement.
As has been previously reported, Andalas is teaming up with Indonesia?s state-owned oil and gas firm PT Pertamina to develop its first wellhead gas to power project in Jambi Province with capacity of 60 MW. Under the plan, the project will take advantage of gas supply from Pertamina?s Tuba Obi East oil and gas concession in the province.
According to a feasibility study completed by Andalas, construction of the project would commence by the fourth quarter of 2017 with a planned completion by end of 2018.
Andalas and Pertamina are also looking to develop more projects to generate total capacity of 250-500 MW, and said have identified two additional gas fields suitable for development of wellhead power plants projects fired by gas.
Elsewhere, the statement said that the agreement with PPE covers independent power producer (IPP) projects across Indonesia, including those developed from gas supplied by Pertamina and by third party gas owners. ?It is expected that PPE will be a suitable partner to join it and PT Pertamina in developing IPPs under Andalas? existing agreement using gas from Pertamina?s portfolio of discovered gas fields in Sumatra,? it said.
David Whitby, CEO of Andalas Energy & Power, commented: ?Our relationship with Pertamina is creating a new gas to power business in Indonesia. The agreement is complementary to this business but importantly enables Andalas to pursue other gas to power projects that it has identified with non-Pertamina gas fields. PPE is a motivated and strategic partner that we believe brings unique skills, relationships and financial resources to a project consortium that we expect will further enable Andalas to deliver its target of 250-500MW. We have already performed a great deal of work in anticipation of signing this agreement and I look forward to announcing the first project shortly.?
The statement said that Andalas will proposed to PPE at least three projects within three months.
Editing by Reiner Simanjuntak