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Nebras, PLN and PJB to cooperate on Indonesian GTP project

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Nebras Power QPSC, Perusahaan Listrik Negara (PLN) and PT Pembangkitan Jawa-Bali (PJB) have signed a Heads of Agreement (HOA) for developing a circa 800 MW power plant along with a FSRU and sourcing of the LNG at Medan, Sumatra, Indonesia.

This would be a Gas to Power (GTP) project. This project comes as one of the outcomes of His Highness Sheikh Tamim Bin Hamad Al Thani – Emir of Qatar – visit to Indonesia in 18th October 2017 and as a result for the discussions that have been held between PLN, PJB and Nebras Power under the aegis of the Qatari and Indonesian Governments.

The signing ceremony was held in Jakarta and in the presence of representatives from the various parties. Nebras Power was represented by Engineer Khalid Mohammed Jolo – CEO of the company.

The signed HOA 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 that would use the regasified LNG from the FRSU. The sourcing of the LNG for the project will be facilitated by Nebras.

The power plant will be a combined cycle power plant using state of the art technologies to reduce electricity production cost and emissions. This GTP project will be the largest of its type in Sumatra. The electricity generated from this GTP project will be sold to PLN through a 25 years Power Purchase Agreement (PPA).

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 project is targeted to reach its commercial operation date in 2019 – 2020.

The project is expected to contribute to the investment of Nebras Power in the South East Asia market, in general, as it is one of the important markets targeted by the company through its investments, and also to strengthen the presence of Nebras Power in the Indonesian market in particular.

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