Nebras in deal to develop Indonesia power, LNG projects

Nebras Power, Perusahaan Listrik Negara (PLN) and Pembangkitan Jawa-Bali (PJB) have signed a heads of agreement (HoA) for developing an 800MW power plant along with a floating storage and regasification unit (FSRU) and sourcing of the liquefied natural gas (LNG) at Medan, Sumatra, Indonesia. This gas-to-power (GTP) project comes as one of the outcomes of the His Highness the Emir Sheikh Tamim bin Hamad al-Thani’s visit to Indonesia on October 18 and as a result for the discussions held between PLN, PJB and Nebras Power under the aegis of the Qatari and Indonesian governments.

The signing ceremony was held in Jakarta in the presence of representatives from the various parties. Nebras Power was represented by its chief executive Khalid Mohammed Jolo. It is a joint venture between Qatar Electricity and Water Company (60%) and Qatar Holding (40%). The 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.

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 re-gasified LNG. The sourcing of the LNG for the project would be facilitated by Nebras.
The power plant would be a combined cycle power plant using the latest technologies to reduce production cost and emissions.  This GTP project, the largest of its type, comes as part of the Indonesian government’s efforts to meet the growing demand for electricity in Sumatra. The electricity generated from this project would be sold to PLN through a 25-year power purchase agreement.

The energy generated from the new plant is expected to support meeting the island’s increasing demand for electricity to meet the ongoing Indonesia’s urban, industrial and tourism expansion and growth. The project is targeted to reach its commercial operation date in 2019-20. The project is 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.