Agreement signed for the development of 600 MW gas power plant, LNG terminal in Indonesia
MANILA — PT. Energi Nusantara Merah Putih (ENMP) jointly with the industrial tenants of the Bantaeng Industrial Park (KIBA) has signed a Heads of Agreement (HoA) in Jakarta, outlining the development plan for a 600MW combined-cycle power plant (PLTGU). The partnership is fully supported by the Government of Bantaeng Regency, South Sulawesi. ENMP will work on the landmark project with Philippines-based, Atlantic, Gulf and Pacific Company (AG&P), that specializes in bringing LNG to markets that are currently off-grid with pragmatic, fast-track, standardized infrastructure.
|Photo courtesy of ENMP.
In 2014, following the adoption of Government Regulation on banning the export of unprocessed mineral ore, the Bantaeng Regent, KIBA was formed covering an area of approximately 3,000ha at the initial stage. The KIBA provides special services to industrial tenants and has attracted a sizeable number of domestic and foreign investments, particularly in smelter development within the regency. Consequently, there is robust growth demand for energy that must be met with adequate installed capacity with a reserve margin to meet the fluctuating and non-linear load demands of nickel smelters operating in the KIBA.
ENMP jointly with its subsidiaries PT. Pasifik Agra Energi and PT. Power Merah Putih are responsible for providing prime energy to the KIBA. ENMP and its partners will also strive to develop Bantaeng as the center of LNG distribution for the central and eastern Indonesia region. The LNG terminal and power plant have an estimated total investment of $980 MM.
AG&P will focus on the design, engineering, construction and operation of the LNG receiving terminals at KIBA. The modular components of the terminal will be constructed at its state-of-the-art manufacturing facilities in Batangas, South of Manila, Philippines.
The project is in the engineering phase and is expected to reach financial close within one year, followed immediately by the construction of the LNG terminal and power plant.
The small-scale GTL (SSGTL) and small-scale LNG (SSLNG) sectors are gaining ground, providing alternative sources of power generation and transportation fuel in remote regions and areas not connected to major gas pipeline routes.
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