Qatari Nebras to Develop Power Plant, FSRU in Indonesia

Qatar’s Nebras Power has signed an initial agreement with Indonesia’s Perusahaan Listrik Negara (PLN) and Pembangkitan Jawa-Bali (PJB) to develop an 800-MW combined cycle gas fired power plant along with a floating storage and regasification unit (FSRU), the company said October 19.

Nebras and PJB will jointly develop, finance, construct, operate and maintain the power plant and the FSRU. The sourcing of the LNG for the project will be facilitated by Nebras.

Nebras said this will be the largest gas-to-power project in Sumatra. The electricity generated will be sold to PLN through a 25 year power purchase agreement. The project is targeted to reach its commercial operation date in 2019-2020.

Power demand in Indonesia and the wider southeast Asian region is expected to grow rapidly in coming decade, leading to greater LNG demand. According to Wood Mackenzie, the Asean region – which consists of Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia – has installed 209 GW of power capacity as of this year, and needs an additional 270 GW of new capacity by 2035, to meets its burgeoning demand. It also expects Asean's LNG demand to triple to 35mn mt/yr in 2025, and grow further to 72mn mt/yr in 2035.

Shardul Sharma