JAKARTA (TheInsiderStories) - Qatari energy company, Nebras Power Q.S.C. said it will invest US$1.35 billion in Indonesia’s Paiton project for producing electricity, The Peninsula reported. Chairman of Nebras Power Fahad bin Hamad Al Mohannadi, that Nebras was currently pursuing investment opportunities in many projects outside of Qatar.
The best investment opportunities are available in GCC member countries such as Saudi Arabia, Kuwait, UAE and Oman. Nebras is looking to pursue opportunities in those countries. Other countries that have good opportunities, Al Mohannadi added, are South-East Asian countries such as Indonesia, Malaysia, Singapore, the Philippines and Vietnam.
Last September, Nebras Power, signed a Head of Agreement with subsidiary of state-owned power producer PT Perusahaan Listrik Negara (PLN), PT Pembangkit Jawa-Bali (PJB), for the construction of Gas Power Plant to 500 MW.
In the agreement, both companies will conduct a feasibility study on the construction of a floating LNG storage facilities (FSRU) to supply gas to power plants to be built in North Sumatra. This power plant is targeted to be operational by 2019.
Nebras Power has signed a binding agreement to acquire ENGIE’s stake of up to 35.5 percent in PT Paiton Energy in Feb. 2016. The acquisition of ENGIE’s stake in Paiton provides Nebras with access to the highly attractive Indonesian power market.
Paiton is well positioned to benefit from favourable fundamentals of the Indonesian power market. With over 2,000 MW of operating base, Paiton is Indonesia’s largest IPP and accounts for a sizable portion of Indonesia’s electricity generating capacity.
As Paiton’s operating base includes Indonesia’s first supercritical coal-fired power plant, Paiton has exceptional experience and know-how in the region. Moreover, Paiton enjoys a long-term power purchase agreement with PLN.
In addition to Paiton, Nebras has acquired a stake in the O&M company that operates Paiton. Led by an experienced operating team, the O&M company has a strong O&M capabilities track record, which will undoubtedly enhance Nebras’s existing capabilities and technology know-how.
Closing of the transaction is expected within the second half of 2016 subject to customary approvals and regulatory consents. (*
