3 May 2017
Andalas Energy and
Power Plc
(‘Andalas’, or the
‘Company’)
Operations
Update
Andalas Energy and Power Plc, the AIM traded Indonesian focused
energy company (AIM: ADL), is pleased to provide an update on the
Company’s plans to develop a portfolio of wellhead independent
power projects (‘IPPs’) targeting 250MW to 500MW of installed
capacity fired with gas from proven fields.
- As previously announced, the issue of new regulations on
2 February 2017, by the Ministry of
Energy and Minerals (the “Minister”), prioritises wellhead
gas to power projects.
- The Minister has issued Decree No. 1415K/20/MEM/2017
(“Decree”) which approves the national energy procurement
plan (subject to various qualifications) delivered by PT PLN
(Persero), Indonesia’s national electricity distribution company
(“PLN”).
- The Minister decrees that PLN will give priority to wellhead
natural gas plants where energy sources are available in business
areas identified in the plan and that he may vary the plan
throughout the year.
- The regulations outline a fast-track approvals process via
direct appointment of wellhead IPP projects without the need for a
public tender.
- Andalas has commenced the next steps in advancing its projects
through this process.
Andalas CEO, David Whitby, said
“Andalas is pioneering the concept of rolling out wellhead IPPs
using established technologies to help tackle Indonesia’s energy
crisis at the local level. In our view, the recent regulatory
changes demonstrate that the Government recognises that these
projects can make a significant contribution towards achieving its
35,000MW target of new capacity and delivering affordable power to
the people of Indonesia. Being a first mover has the
potential to generate significant rewards for our shareholders as
we look to rapidly build an initial portfolio targeting 500MW of
installed capacity.
“The new regulations and Decree are the first time wellhead IPPs
have been recognised as a distinct class of project and given
special consideration outside the usual planning and approval
cycle. The Decree prioritising wellhead IPPs opens the door
for Andalas and our partner Pertamina to identify and propose
further projects for approval by the Minister, capitalising on the
progress made on our recently announced project pipeline.”
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 |