SET-listed Electricity Generating Plc (Egco) has expanded its portfolio in Indonesia by acquiring shares in two geothermal power plants in West Java from Chevron’s affiliates.
The affiliate of Egco Group, Star Energy Group Holdings Pte Ltd and AC Energy Holdings Inc entered into an agreement to acquire shares from Chevron’s affiliates in Salak and Darajat geothermal power plants in Indonesia on Dec 22.
As the result, Egco Group will hold 20.07% indirect ownership interest in the Project. The share transfer is expected to be completed in the first quarter of 2017, said Egco president Chanin Chaonirattisai.
Salak and Darajat geothermal power plants are located in West Java province and composed of several geothermal steam and electricity generating units with the aggregate capacity of 402 Megawatts of electricity and 235 MW equivalent of steam.
The power plants have secured long-term energy sales contracts with PT PLN (Persero), the Indonesian government-owned electricity corporation.
“The acquisition fulfills our business plan in enhancing Egco Group’s presence in Indonesia which we have existing business, and in line with our strategic directions to pursue investment opportunities in Asia Pacific region” said Mr Chanin.
Egco Group has started its investment in Indonesia since 2014 by holding 20% indirect ownership interest in Star Energy’s geothermal power plant which has the total installed capacity of 227MW.