Pertamina, Andalas in gas-to-power venture

State-owned Pertamina of Indonesia and Andalas Energy & Power PLC of Douglas, Isle of Man, have signed an agreement to develop marginal gas fields to supply fuel for mobile or modular power plants in three Indonesia provinces.

The companies initially will focus on identifying at least five stranded gas fields on Pertamina acreage in Riau, Jambi, and South Sumatra suitable for gas-to-power development smaller than 100 Mw.

After identifying the fields, they plan to form exclusive joint development agreements to design, build, fund, and operate separate independent power projects.

They’ll work together to generate IPP commercialization plans for each of the fields.

In the targeted provinces, an estimated 5.8 million people do not have electric power. Total population in the provinces exceeds 20 million.

The Indonesian government aims increase generation capacity by 35 Gw nationwide. More than 60 million Indonesians lack access to electricity.

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