Qatar's Nebras says to buy Engie's stake in Indonesia's Paiton

DOHA, Oct 31 (Reuters) - Qatar’s Nebras Power plans to acquire a 35.5 percent stake held by French utility Engie in Indonesia’s largest independent power producer PT Paiton Energy by the end of 2016, the CEO of Nebras said on Monday.

The Qatari infrastructure investment firm, 60 percent owned owned by Qatar Electricity and Water, with the remainder split between Qatar Petroleum and Qatar Holding, said in February it planned to acquire the stake in PT Paiton.

Engie currently has a 40.5 percent stake, with the remainder held by Japan’s Mitsui, Tokyo Electric Power, and Indonesia’s PT Batu Hitam, according to Engie’s website.

“The Paiton project we are in the process of closing now. We are targeting the end of this year,” Khalid Jolo told Reuters.

Jolo declined to comment on the value of the stake but Nebras Power’s chairman, Fahad al-Mohannadi, told state news agency QNA in October that it planned to invest $1.35 billion in Indonesia’s Paiton project for producing electricity.

Qatar, the world’s biggest liquefied natural gas producer, founded Nebras in 2014 as a $1 billion investment arm to add foreign power and water assets to stakes it already had in businesses from Volkswagen to Harrods department store in London.

It has invested in solar power projects in Jordan and acquired a stake in the Oman-based Phoenix Power Company.

Nebras is studying the feasibility of building a power plant in Senegal, Jolo said. “We are trying to develop a project there. Once it [the feasability studies] are approved we’ll go ahead with that project,” he said.

Jolo said Nebras would decide by 2017 whether to invest in a 500 megawatts natural gas-fired power plant that it said last year it was considering building with Indonesian utility PT PLN (Persero). (Editing by William Hardy)