Indonesia’s Pertamina Geothermal eyes tie-up in Kenya

PT Pertamina Geothermal Energy Tbk (IDX:PGEO), or PGE, part of Indonesian state-owned energy company PT Pertamina (Persero), is looking at partnering with Africa Geothermal International No. 1 Ltd (AGIL No. 1) to develop geothermal potential in Kenya’s Longonot concession.

PGE said today it has signed a memorandum of understanding with Africa Geothermal International Ltd (AGIL), a subsidiary of AGIL No.1 engaged in geothermal energy development in Kenya, including through the Longonot field, which offers a development potential of up to 500 MW, with 140 MW ready for exploitation.

The agreement was signed during Indonesian president Joko Widodo’s visit to Kenya.

The company noted that Kenya is seventh globally with 865 MW of installed geothermal capacity. Indonesia has 2,356 MW, of which 80% is in PGE's working area, with 672 MW directly managed by PGE. The company aims to raise its self-operated installed capacity to 1 GW in the next two years.

"We are optimistic that Pertamina Geothermal Energy's strategic efforts in Africa can support the Company's targets in increasing installed capacity, expanding its clean energy portfolio internationally in order to achieve the aspirations of a global clean energy company and support efforts to reduce greenhouse gas emissions and dependence on fossil energy sources," said PGE president director Julfi Hadi.

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