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Tribune News Network
Doha
Strengthening its presence in Southeast Asian market, Qatar's Nebras Power has signed an agreement with Indonesia's Perusahaan Listrik Negara (PLN) and PT Pembangkitan Jawa-Bali (PJB), to develop 800 MW power plant on Sumatra island, a press statement said on Monday.
According to the heads of agreement (HOA), signed recently in Jakarta, Nebras will also develop a floating storage and regasification unit (FSRU), and source LNG from FSRU, the statement said.
The gas-to-power (GTP) project comes as part of the Indonesian government's efforts to meet the growing demand for electricity in Sumatra.
The energy generated from the new plant is expected to meet the island's increasing demand for electricity, and will boost Indonesia's ongoing urban, industrial and tourism expansion and growth. The commercial operation of the project is expected to begin in 2019-2020, the statement said.
According to the HOA, Nebras and PJB will jointly develop, finance, construct, operate and maintain the power plant and the FSRU.
The power plant will use the regasified LNG from the FRSU, and the sourcing of the LNG for the project will be facilitated by Nebras, the statement said.
The power plant will be a combined cycle power plant using state-of- the-art technologies to reduce electricity production cost and emissions. The GTP project will be the largest of its type in Sumatra, and the electricity generated from the project will be sold to PLN through a 25- year power purchase agreement (PPA), the statement added.
Nebras Power was represented by Engineer Khalid Mohammed Jolo - CEO of the company.
Nebras Chairman, Fahad al Mohannadi, said,"The HOA shows our continued confidence in the Indonesian economy and market, where we have recently successfully struck a large deal by acquiring a significant share in Paiton power plant, which has a production capacity of more than 2000 MW".
Nebras CEO, Khalid Mohammed Jolo, who signed the deal, said,"The HOA comes within the framework of promoting further economic cooperation between Qatar and Indonesia, and we hope to further strengthen the foundations for a long-lasting relationship.
"The cooperation reflects the trust of the Indonesian government in Nebras, which will make us work closely with our partners to support PLN's long-term plans to meet the growing needs of the Indonesian energy market.
"Through this project, Nebras Power aims to strengthen its position in the global energy markets and support its ambition to grow and expand globally."
Faisal al Siddiqi, Chief Business Development Officer, Nebras, said,"We hope that by executing this project we will be supporting the electricity needs in Sumatra and also contributing to stimulate the Indonesian economy. We will ensure that the latest available technology would be implemented in the project and at competitive prices."
Nebras is a joint venture of two government related entities, Qatar Electricity and Water Company (QEWC) (60 percent) and Qatar Holding (QH) (40 percent), the statement added.
