Andalas Energy and
Power Plc
(‘Andalas’, or the
‘Company’)
Signs Agreement
with PT PP Energi
Andalas Energy and Power plc (AIM:ADL) is pleased to announce
that it has signed an agreement (‘Agreement’) with PT PP Energi
(‘PPE’), a division of PT PP (Persero) Tbk (‘PTPP’), 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.
Highlights:
- 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.
**ENDS**
For further information, please contact:
David Whitby |
Andalas Energy and Power Plc |
Tel: +62 21 2783 2316 |
Sarah Wharry
Craig Francis |
Cantor Fitzgerald Europe
(Nominated Adviser and Joint Broker) |
Tel: +44 20 7894 7000 |
Jon Belliss |
Beaufort Securities Limited
(Joint Broker) |
Tel: +44 20 7382 8415 |
Frank Buhagiar
Susie Geliher |
St Brides Partners Limited |
Tel: +44 20 7236 1177 |