Breaking News

Nebras, PLN tie up to develop gas power plant, FSRU in Indonesia

JAKARTA (RambuEnergy.com) – Nebras Power, a Qatar company has teamed up with Indonesia’s state owned electricity company PT Perusahaan Listrik Negara (PLN) to develop a large gas power plant (PLTGU) with expected investment of US$1 billion. PLN will develop the project through its subsidiary PT Pembangkitan Jawa Bali (PJB).

Director for Strategic Procurement of PLN Supangkat Iwan Santoso said the PLTGU will be developed in North Sumatera with capacity of 800 MW. The power purchase agreement (PPA) is expected to be sealed in early next year and targeted commercial operation in three years since construction, namely in 2021.

Supangkat said the company is yet to decide whether it will buy domestic LNG or imported the LNG.

Under PLN’s 2017-2026 Masterplan (RUPTL), PLN sets a target to add the gas power plants capacity by 5,600 MW to 20,741 MW in 2026. The allocation of LNG will also increase to 1,194 trillion british thermal unit (TBTU) from 606 TBTU.

 

This gas-to-power (GTP) project was inked on the sideline of recent visit of the Emir Sheikh Tamim bin Hamad al-Thani to Indonesia (Oct.18) and as a result for the discussions held between PLN, PJB and Nebras Power under the aegis of the Qatari and Indonesian government.

The signing ceremony was held in Jakarta in the presence of representatives from the two companies and government senior officials. Nebras Power was represented by its chief executive Khalid Mohammed Jolo.

The heads of agreement (HoA) aims to develop a general framework for cooperation between the parties and facilitate the ways of cooperation among them in developing the GTP project.

Based on the HoA, Nebras and PJB will jointly develop, finance, construct, operate and maintain the power plant and the FSRU that would use the re-gasified LNG. Although PLN said it is yet to decide the source of LNG, some media reports said that the sourcing of the LNG for the project would be facilitated by Nebras.

For Nebras Power, the project is expected to contribute to the investment of the company in the South East Asia market and also to strengthen the presence of Nebras Power in the Indonesian market in particular. (*)

 

 

Check Also

Latham & Watkins advises sponsors on $1.74B Financing of Cirebon Coal-fired Power Plant

 JAKARTA (RambuEnergy.com) - Latham & Watkins, a global law firm, said it is advising the sponsors in ...

Leave a Reply

Your email address will not be published. Required fields are marked *