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.
Indonesia, home to 260 MM people on 14,000 islands across a vast archipelago, is estimated to become the seventh-largest economy in the world by 2030, with such growth expected to boost the nation’s energy consumption by 80% from present levels.<sup>1</sup>
At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
View on Demand