Trio agrees development of Indonesian LNG to power project

Qatari Nebras Power signed an agreement with Perusahaan Listrik Negara (PLN) and PT Pembankitan Jawa-Bali (PJB) to build an LNG fueled power project in Sumatra, Indonesia. 

The project would include an 800 MW power plant with a floating storage and regasification unit (FSRU), the company’s statement reads.

The Heads of Agreement signed between the three companies 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. The sourcing of the LNG for the project will be facilitated by Nebras.

The project is the largest of its type in Sumatra, Nebras said in its statement, noting that the electricity generated by the project will be sold to PLNg through a 25-year power purchase agreement.

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 island’s increasing demand for electricity to meet the ongoing Indonesia’s urban, industrial and tourism expansion and growth.

The facility is targeted to reach its commercial operation date in 2019-2020.

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