Qatari Nebras Power, PLN, PJB Signs US$1 Billion Projects

Photo by Nebras Power

JAKARTA (TheInsiderStories) – Qatari Nebras Power Q.P.S.C., in collaboration with state-owned power producer PT Perusahaan Listrik Negara (PLN) and its unit PT Pembangkit Jawa Bali (PJB) signed a Head of Agreement for a US$1 billion on Oct. 19.

The third party will develop an 800 megawatt (MW) Power Plant, along with a Floating Storage Regasification Unit (FSRU) and sourcing for liquefied natural gas (LNG) up in Medan, North Sumatra.

This project comes as one of the outcomes of the visit of Sheikh Tamim Bin Hamad Al Thani – Emir of Qatar – to Indonesia and following discussions held between PLN, PJB and Nebras Power, under the aegis of the Qatari and Indonesian Governments.

The project is targeted to reach commercial operation by 2019 or 2020. The electricity generated from this project will be sold to PLN through a 25-year Power Purchase Agreement.

The project comes as part of the Indonesian government’s efforts to meet the growing demand for electricity in Sumatra. The new plant is expected to support the island’s increasing urban, industrial and tourism expansion and growth.

Nebras Power CEO Khalid Jolo stated: ‘This cooperation reflects the trust of the Indonesian Government in Nebras Power, which will allow us to work closely with our partners to support long-term PLN plans to meet the growing needs of the Indonesian energy market.’

Previously, on August 10, 2017, Minejesa Capital B.V. (35.5 percent indirectly owned by Nebras Power) achieved a financial close in respect of a $2.75 billion, multi sourced non-recourse debt financing.

The financing package consists of a $800 million 20-year and $1.2 billion 13-year amortising bond also a 6-year $750 million corporate loan facility incorporating U.S dollar and Japanese Yen denominated tranches. Moody’s and Fitch confirmed investment grade ratings for the bonds: Baa3 and BBB- (respectively).

Minejesa is a joint venture owned by Nebras Power, Mitsui & Co., JERA Co. and local coal producer PT Batu Hitam Perkasa. The proceeds of the financing will be invested in PT Paiton Energy (an Indonesian power generating company, 35.5 percent indirectly owned by Nebras Power).

The funds will be used by Paiton Energy to prepay outstanding senior debt facilities and subordinated shareholders loans and for general corporate purposes. Paiton Energy provided an unconditional guarantee of the debt financing package.

Nebras Power was established in 2014 and is headquartered in Doha, State of Qatar. The Company has been given a mandate to develop and manage a portfolio of strategic investments in the power and water sectors throughout the world, outside of the State of Qatar. Nebras is a joint venture of two Government Related Entities, Qatar Electricity and Water Company (60 percent) and Qatar Holding (40 percent).

Sidrap Wind Power Up and Running by 2018

Meanwhile, AC Energy’s first greenfield offshore project PT UPC Sidrap Bayu Energi (UPC Sidrap) is on track for completion. As of July 31, 2017, the construction of the 75MW Sidrap Wind Farm was 60 percent complete, based on UPC Sidrap’s monitoring report.

Spanish Ayala Group’s power unit AC Energy expects its 75-megawatt wind project in Indonesia to go online in the first quarter of 2018, as construction makes headway in South Sulawesi.

UPC Sidrap, the owner and operator of the $150-million Sidrap wind farm, is a joint venture among UPC Renewables, PT Binatek Energi Terbarukan and AC Energy Holdings.

The Sidrap project is part of AC Energy’s moves to expand its footprint in the Southeast Asian region. AC Energy also has a 20-percent stake in Star Energy (Salak-Darajat) B.V., which acquired Chevron’s geothermal operations in Indonesia.

The Sidrap Project is located on a group of windy ridges along the coast of northern South Sulawesi.  The location has very strong winds and a local community that welcomes the project’s economic and power benefits.  The project will integrate well with the rural environment. Many new jobs in both project development and construction have been created, with the majority being filled by local people from the region.

Writing by Linda Silaen, Email: