Andalas Energy and Power (ADL) has updated its activities in Indonesia, including the completion of a feasibility study for its first 60MW wellhead gas-to-power project in partnership with Pertamina in the Jamba province of Sumatra.
The company aims to develop a portfolio of at least five wellhead independent power producer projects (IPPs) with 250MW-500MW of installed capacity fired with gas from proven fields.
Following a feasibility study carried out by PLN Enjinering, it was found that additional generation capacity is required to satisfy power demand in the region.
Power produced by the project can be connected to the PLN system and can be absorbed by the Sumatra power network.
PLN has confirmed that Andalas’ 60MW Wellhead IPP project is expected to be the first to be evaluated by the company under the new regulations issued by the Ministry of Energy and Minerals.
Following submission for approval of the first project, initiation of four new projects is being targeted this year.
Andalas CEO David Whitby said: "The results of the feasibility study by PLN Enjinering for our first gas to power project alongside Pertamina confirm what we have long-known: not only is the project viable but it can also play a vital role in satisfying local demand for power.
"The recently announced new regulations have elevated Wellhead IPPs to a priority level within the government’s 35,000MW programme.
"The government’s new regulation governing Wellhead IPPs is exactly aligned with Andalas’ gas-to-power strategy and I look forward to informing shareholders as we progress our first project through to approval."
Construction of the first project is expected to start in the fourth quarter of this year and be completed by fourth quarter of next year.
Andalas and Pertamina currently are focusing on identifying the location of gas supply for the next Wellhead IPP projects.