Andalus Keen to Use Indonesian Gas for Power
UK-listed Andalas Energy & Power has signed a memorandum of understanding (MOU) with Indonesia's Pertamina Power Indonesia (PPI) and German turbine-making giant Siemens to develop an independent power project at Pertamina's Puspa field in Sumatra, it said October 18.
The agreement allows the three to engage project partners; negotiate and agree 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 statement said. All parties will bear their own share of the costs.
The MOU is for a term of 24 months and subject to all necessary approvals and finance. Andalas will take a final investment decision (FID) after the project has been included in the 2017-2026 Electricity Supply Business Plan of PT PLN (Persero) and completed the work programme outlined above, obtained various licences relating to the facility and transmission lines and negotiated the final agreements with other stakeholders including the consortium members, state upstream producer Pertamina EP, state electricity grid operator PLN, and lenders.
The third party costs to Andalas during the development phase are expected to be modest, relating only to the capital costs of the power plant, which will only be incurred when the project achieves FID.
Andalas Energy & Power CEO David Whitby said the Puspa MOU established its first joint project with PPI and Siemens. Pertamina has recently completed an appraisal program on the Puspa field. The proposed IPP would enable Pertamina to commercialise 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," he said.
William Powell