Thursday, 17th August 2017

Heads of agreement signed for the development of 600MW PLTGU power plant in the Bantaeng Industrial Park, South Sulawesi

11th August 2017 | 1.530 Views
Heads of agreement signed for the development of 600MW PLTGU power plant in the Bantaeng Industrial Park, South Sulawesi
AG&P to build and operate the landmark LNG receiving terminal in South Sulawesi (Antara/BUSINESS WIRE)
JAKARTA, Indonesia--(Antara/BUSINESS WIRE)-- PT. Energi Nusantara Merah Putih (ENMP) jointly with the industrial tenants of the Bantaeng Industrial Park (KIBA) have signed a Heads of Agreement (HoA) 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. Philippines-based, Atlantic, Gulf and Pacific Company of Manila (AG&P), that owns and operates LNG infrastructure and solutions, will also participate in the landmark project.

In 2014, following the adoption of Government Regulation No.12/2014 banning the export of unprocessed mineral ore, the Bantaeng Regent, M. Nurdin Abdullah, formed the KIBA covering an area of approximately 3,000ha at the initial stage. The KIBA provides special services to industrial tenants through the Bantaeng Regional Corporation (Perusda), therefore making it very convenient for doing business. The policy has attracted a sizeable number of domestic and foreign investments, particularly in smelter development in the regency since then. 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, as the owner and developer of an integrated liquefied natural gas (LNG) receiving terminal to provide natural gas for the power plant, and PT. Power Merah Putih, as the owner and developer of the 600MW power plant, 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 USD980 million.

"The integration of this project will allow the KIBA supporting industries to accomplish the construction of the LNG receiving terminal immediately. This is a crucial part of the 600MW power plant itself, which will start operations by mid-2021," said the President Director of ENMP, Westana H. Wiraatmadja.

ENMP is working with AG&P, that specializes in bringing LNG/natural gas to markets that are currently off-grid with pragmatic, fast-track standardized infrastructure. Bringing together its in-house expertise, 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.

“AG&P is thrilled to support this nationally important project in Bantaeng. We look forward in short order to LNG being available for the power plant and to industry and consumers throughout Southern Sulawesi and nearby regions. AG&P will work hard to achieve this goal,” said AG&P CFO & Commercial Head, Abhilesh Gupta.

Currently, the project is in the engineering phase and is expected to reach financial closing within one year, followed immediately by the construction of the LNG terminal and power plant.

By encouraging the development of industrial-based areas like the KIBA, Bantaeng will become one of the largest nickel processing centers in the world and will contribute significantly to the economy of Indonesia and South Sulawesi, and particularly the regency itself.

Bantaeng Regent, M. Nurdin Abdullah, the Director of the Bantaeng Industrial Park, Taufik Fachrudin, and the Directors of the KIBA industrial tenants attended the signing ceremony.

Tenant listed in the KIBA:

1. PT. Huadi Nickel Alloy
2. PT. Titan Mineral Utama
3. PT. Bantaeng Central Asia Steel
4. PT. Sinar Deli Bantaeng
5. PT. Intim Perkasa Energi
6. PT. Multi Kilang Pratama
7. PT. Sergion Techno
8. Incensement Mills Indonesia

About AG&P
Based in the Philippines, Atlantic Gulf & Pacific Company of Manila (AG&P) is a pioneer of high-value modular infrastructure now at the forefront of the LNG infrastructure revolution providing gas or LNG to customers via integrated LNG receiving terminals and their supply chains. AG&P designs, manufactures, finances, leases, operates and maintains regasification and storage terminals, LNG transportation vessels and demand-stimulated assets. From sourcing gas to last-mile delivery, AG&P is the unique integrator that brings all parties together to deliver projects for lower, pragmatic capital cost.

For more than 117 years, AG&P has been a global leader in infrastructure solutions, delivering cutting-edge modularized products and support services to vessels, projects, and plants for the energy, resources and industrial sectors. AG&P modularizes infrastructure for refineries, LNG export and import facilities, power, petrochemical, and mining plants, building up to 125,000 tons of dense and complex modules each year.

For more information about AG&P’s LNG capabilities visit http://www.agp.ph/.

Contacts

PT. Energi Nusantara Merah Putih
Iqbal Fachrudin
GM Government and External Relation
fachrudiniqbal@gmail.com / 0821 9169 7076

Source: AG&P