Andalas Energy and Power plc (AIM:ADL) is pleased to announce that it has signed an agreement with PT PP Energi, a division of PT PP (Persero) Tbk, the state owned construction and engineering company, to jointly develop gas fired power facilities (“IPPs”) in Indonesia. The Agreement is a significant milestone for the Company because it builds on Andalas’ existing business with Pertamina and PTPP and PPE have the capability to bring significant complementary experience and resources to joint projects.
The agreement covers IPP projects across Indonesia, including those developed from gas supplied by Pertamina and by third party gas owners. It is expected that PPE will be a suitable partner to join it and PT Pertamina (Persero) in developing IPPs under Andalas’ existing agreement (see announcement 1 September 2016) using gas from Pertamina’s portfolio of discovered gas fields in Sumatra.
- Andalas to propose at least three projects to PPE within three months.
- PPE parent company, PTPP, is an Indonesian state-owned enterprise that is listed on the Indonesian Stock Exchange with a market capitalisation of approximately US$1.4 billion and generated revenue of US$1.2 billion in 2016.
- PTPP group is one of the largest construction and investment groups in Indonesia and is considered a preeminent engineering procurement and construction (‘EPC’) contractor of Indonesian independent power producer projects.
- PTPP group has a strong relationship with the national power company, PLN, having constructed 14 power projects for PLN totalling 2,168 MW since 2012.
- PTPP was awarded Indonesia’s Most Admired Company 2017 Construction Category by Warta Ekonomi Magazine in May 2017.
David Whitby, CEO of Andalas Energy & Power, commented: “Our relationship with Pertamina is creating a new gas to power business in Indonesia. The agreement is complementary to this business but importantly enables Andalas to pursue other gas to power projects that it has identified with non-Pertamina gas fields. PPE is a motivated and strategic partner that we believe brings unique skills, relationships and financial resources to a project consortium that we expect will further enable Andalas to deliver its target of 250-500MW. We have already performed a great deal of work in anticipation of signing this agreement and I look forward to announcing the first project shortly.”
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR). Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
For further information, please contact:
|David Whitby||Andalas Energy and Power Plc||Tel: +62 21 2783 2316|
Cantor Fitzgerald Europe
(Nominated Adviser and Joint Broker)
|Tel: +44 20 7894 7000|
Beaufort Securities Limited
|Tel: +44 20 7382 8415|
|St Brides Partners Limited||Tel: +44 20 7236 1177|