Singapore?s Federal to build power station and LPG plant in Jambi

Singapore Exchange-listed firm Federal International (2000) Ltd announced on Tuesday that its wholly-owned subsidiary, Federal Hardware Engineering Co. Pte Ltd (FHEC), has entered into a co-operation agreement with PT Tanjung Jabung Power (?TJP) to establish a joint-venture company, PT Jabung Gas Plant, in Jambi to provide electricity and gas to PT Lontar Papyrus Pulp and Paper Industry.

FHEC and PT TJP have 60% and 40% stakes respectively in PT Jabung Gas Plant.

As part of the Gas and Power Sales and Purchase Agreement with Lontar Papyrus, PT Jabung Gas Plant will build, operate and own an integrated gas and power plant, comprising a 6-megawatt gas power plant and a Liquefied Petroleum Gas (LPG) refinery plant with a daily capacity of between 40 and 57 tonnes, both located at West Tanjung Jabung area, Jambi Province. The LPG and condensate from this plant will also be sold to other third parties.

The duration of the project is 10 years with an option to extend for an additional 5 years.

The expected revenue for this project is US$178 million over a period of 10 years. The cost of constructing this plant is US$18.8 million.

Construction of this plant is expected to commence in September 2007 and be completed by August 2008, the company said. (alex)