British Andalas to Build More Gas-based Power Facilities in Indonesia

UK-listed Andalas Energy and Power has signed an agreement with Indonesian PP Energi (PPE), a division of state-owned engineering firm PP Persero (PTPP), to develop gas-fired power facilities in the southeast Asian nation, it said July 17.

“The agreement is a significant milestone for the company because it builds on Andalas’ existing business with Pertamina and PTPP and PPE have the capability to bring significant complementary experience and resources to joint projects,” Andalas said.

The agreement covers independent power producer (IPP) projects across Indonesia, including those developed from gas supplied by Pertamina and by third party gas owners. Andalas believes PPE will be a suitable partner to join it and Pertamina (Persero) in developing IPPs under Andalas’ existing agreement using gas from Pertamina’s portfolio of discovered gas fields in Sumatra.

“Our relationship with Pertamina is creating a new gas to power business in Indonesia. The agreement is complementary to this business but importantly enables Andalas to pursue other gas to power projects that it has identified with non Pertamina gas fields. PPE is a motivated and strategic partner that we believe brings unique skills, relationships and financial resources to a project consortium that we expect will further enable Andalas to deliver its target of 250-500MW,” CEO of Andalas Energy & Power, David Whitby, said.

Andalas plans to propose at least three projects to PPE within three months. 

Shardul Sharma