Medco, Kyushu Electric sign deal to tap energy projects

JSX-listed energy firm PT.Medco Energi Internasional Tbk. said on Monday its power generation business units PT.Medco Power Indonesia (MPI) and PT Medco Geothermal Indonesia (MGI) have signed agreement on April 11, 2007 with Japan?s Kyushu Electric Power (KEP) to cooperate in tapping business opportunities.

The initiative will also provide a platform for investment opportunities and development in the Power business as well as any other upstream resource utilization projects in Indonesia and other countries, Medco said in a release.

?The intent of the Agreement is to provide a platform for collaboration in the future for power business. However, if there are any additional new LNG or new coal projects, Kyushu Electric Power may want to jointly develop the opportunity with MedcoEnergi which will have to be agreed by both parties as well?, said Fazil E. Alfitri, President Director MPI.

KEP is one of the largest power companies in the Kyushu island, south of Japan and currently is one of the long term Indonesian LNG buyers since 1977. It has several IPP projects outside of Japan.

MPI is currently operating 2 gas-fired power plant with a total combined capacity of 140 MW in Batam, and an Operations & Maintenance Services contract for Tanjung Jati B coal-fired power plant with capacity of 1320 MW. (alex)