Nebras Power signs HOA for 800MW power project
24 Oct 2017 - 0:13
Nebras Power, Perusahaan Listrik Negara (PLN) and PT Pembangkitan Jawa-Bali (PJB) have signed a Heads of Agreement (HOA) for developing a circa 800 MW Power Plant along with a Floating Storage and Regasification Unit (FSRU) and sourcing of the LNG at Medan, Sumatra, Indonesia. This would be a Gas to Power (GTP) Project.
Nebras Energy said in a statement yesterday that this project comes as one of the outcomes of the Emir H H Sheikh Tamim Bin Hamad Al Thani’s visit to Indonesia in October 2017 and as a result for the discussions that have been held between PLN, PJB and Nebras Power under the aegis of the Qatari and Indonesian Governments, QNA reported.
According to the statement, the project is targeted to reach its commercial operation date in 2019-2020. It also expected to contribute to the investment of Nebras Power in the South East Asia market, in general, as it is one of the important markets targeted by the company through its investments, and also to strengthen the presence of Nebras Power in the Indonesian market in particular.
The signed HOA aims to develop a general framework for cooperation between the parties and facilitate the ways of cooperation between them in developing the GTP Project. According to the HOA, Nebras and PJB will jointly develop, finance, construct, operate and maintain the Power Plant and the FSRU that would use the regasified LNG from the FRSU. The sourcing of the LNG for the Project will be facilitated by Nebras.
Khalid Jolo, Nebras CEO
The Power Plant will be a combined cycle power plant using state of the art technologies to reduce electricity production cost and emissions. This GTP project will be the largest of its type in Sumatra. The electricity generated from this GTP project will be sold to PLN through a 25 years Power Purchase Agreement (PPA).
The 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 support meeting the islands increasing demand for electricity to meet the ongoing Indonesia’s urban, industrial and tourism expansion and growth.
Commenting on the HOA, Chairman of Nebras Power, Fahad Al Mohannadi said: “We are pleased to conclude this HOA which shows our continued confidence in the Indonesian economy and market, where we have recently successfully concluded 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 Jolo said: “This 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. This cooperation reflects the trust of the Indonesian Government in Nebras Power, which will make us work closely with our partners to support PLNs long-term plans to meet the growing needs of the Indonesian energy market.”
Nebras Power Chief Business Development Officer, Faisal Al Siddiqi 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 Power has been established to invest in feasible and profitable large-scale power and water projects around the world.