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Andalas, Pertamina, Siemens to jointly develop well-head gas power plant

JAKARTA (RambuEnergy.com) – Andalas Energy and Power Plc of United Kingdom will team up PT Pertamina Power Indonesia, a unit of wholly-owned subsidiary of PT Pertamina, and Siemens AG to develop a well-head gas power plant in Puspa gas field on the Sumatera island with potential installed capacity of 20-50 MW.

The Puspa field is operated by PT Pertamina EP, a subsidiary of Pertamina. The memorandum of understanding (MOU) has been signed recently. The MoU provides the basis to:

  • engage project partners;
  • negotiate and agree on further project agreements with all stakeholders;
  • secure gas from the Puspa field;
  • generate conceptual development plans including an electricity demand analysis, a load flow study, a site identification study, identify and select gas-fired power generation technology, and identify and select an engineering, procurement and construction contractor.

The agreement includes binding provisions relating to the joint pursuit of the project, conditions precedent, exclusivity, costs, term and confidentiality and non-binding provisions relating to the objectives and execution of further agreements and joint committees.  The MoU will last for 24 months and subject to all necessary approvals and finance.

Andalas said it will make a final investment decision (FID) after the project has been included in the state electricity company PLN’s RUPTL (power plants masterplan). The FID will also be made after Andalas has completed the work program outlined above, obtained various licenses relating to the facility and transmission lines and negotiated the final agreements with other stakeholders including the consortium members, PEP, PLN and lending institutions.

“The execution of the Puspa MOU establishes our first joint project with PPI and Siemens,” David Whitby, CEO of Andalas Energy & Power, commented.

Pertamina has recently completed an appraisal program in the Puspa field.  The proposed IPP would enable Pertamina to commercialize the field.

Andalas’ preliminary assessment is that it will support a 20 to 50 MW wellhead IPP.  We will continue to refine this model in discussions with all stakeholders including PPI, Siemens, PEP and PLN.

“We are pleased to welcome Siemens to our consortium.  Siemens is a leading provider of generating systems and networks in Indonesia and we believe their addition to the project will prove invaluable,” Whitby added (*)

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