Home » Andalas Energy and Power (ADL) » Indonesia to overcome power shortages via mobile power plants – Andalas Energy & Power (ADL)

Indonesia to overcome power shortages via mobile power plants – Andalas Energy & Power (ADL)

August 2nd 2017

Article from ESI Africa


In international news, under the 2017 Republic of Indonesia’s Electricity Supply Business Plan it has been announced that mobile power plants are to be deployed to deal with short-term power shortages.

In response to this and in parallel with Andalas Energy and Power’s core business of developing 30MW to 100MW independent power projects, the company has identified a number of gas projects as part of its work with Pertamina and other gas owners.

According to a company statement there are three categories of gas fields that are being targeted including:

  • Smaller projects (circa 30BCF) that are considered too small for a long term IPP development but are suitable for a shorter project life
  • Producing gas fields with surplus uncontracted gas supply
  • Oil fields where oil production is constrained by flaring consents

Rollout of gas projects

In September 2016, the pair partnered to commercialise gas fields within Pertamina’s acreage in Sumatra via the rollout of the Andala’s gas to power offering. Read more….

Since then a number of projects have been subjected to a vigorous selection, due diligence and evaluation exercise, resulting in the identification of multiple proven fields that are suitable for gas-to-power development, the press statement revealed.

Financing mobile power plants

According to the release, Sandabel has agreed to extend the maturity date of the £550,000 ($721,000) loan note to 31 August 2017 (the maturity date).  The fee associated with the extension is £50,000 ($66,000), which will be repaid alongside the £550,000 loan note on or before the maturity date.

The CEO of Andalas Energy & Power, David Whitby, commented: “We believe that our ability to identify competitive sources of gas, creates multiple opportunities in the power market in Indonesia.As was the case when the board of directors participated in the recent placing, the extension of the loan note provides the company with additional flexibility at a time when we are seeking to deliver on the multiple objectives that we have been working on since signing our agreement with Pertamina.  I look forward to providing further updates on our progress.”

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