Kansai Electric Power to develop gas power plants with Indonesia's Medco

08, Sep. 2020

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JAKARTA, NNA – The Kansai Electric Power Co., Inc (Kansai) and a subsidiary have agreed to set up a joint venture with the electric power unit of Indonesia's largest listed energy company to develop gas power stations in the Southeast Asian country.

The strategic alliance will see Kansai and its wholly owned subsidiary, Kanden Power-Tech Corporation (KPT), banding with PT Medco Power Indonesia (MPI) to build and operate advanced gas-fired power plants "in a continuous manner", Kansai said in a statement on Monday.

"Kansai positions the alliance as a platform to expand its business in Indonesia where electricity demand is growing steadily in line with its economic growth,” said Mikio Matsumura, executive vice president, who heads the company’s international business division.

Headquartered in Osaka, the Japanese electric group noted that MPI, a major company of PT Medco Energi Internasional, is actively expanding its power business in Indonesia. MPI currently owns or runs 18 power plants with a total capacity of over 3.3 GW.

On their collaboration, Kansai said the company and KPT will offer their cutting-edge expertise in thermal power plants while MPI's contributions will come from its vast experience in developing and operating power plants in Indonesia.

The three partners are still discussing details of the joint venture such as the investment sum of each and the launch date, a Kansai spokeswoman told NNA by email on Monday.

This is Kansai's first overseas undertaking to collaborate with a "remarkable domestic power developer for continuous and sustainable promotion of power business," said its statement. The company had previously formed a business alliance with overseas partners for an individual project.

According to the company's medium-term management plan, expanding activities and investment in power related business in the world will become one of the key cornerstones of the group’s overall earnings.

Kansai has set a goal of increasing the combined power output at its overseas power stations to between 10 and 12 million kilowatts over a 10-year period starting from 2016.

In Indonesia, Kansai's Rajamandala hydropower plant in West Java province began commercial operations in May 2019. The power company is also building the Tanjung Jati B Thermal power station in Central Java province, jointly with Japanese trading house Sumitomo Corp.