Indonesian state-owned electricity utility PT PLN (Persero) has signed a long-term agreement with PT Jawa Satu Power to purchase power from the Jawa 1 gas-fired project in the country.

PT Jawa Satu is a special-purpose company sponsored by Sojitz, PT Pertamina (Persero) (Pertamina), and Marubeni.

Planned to be built in Cilamaya, West Java province, Java island, the project involves construction of 1,760MW of gas-fired power plant and floating storage and regasification unit (FSRU).

Said to be Indonesia’s first integrated power project, the Jawa 1 will be 20% owned by Sojitz while Pertamina and Marubeni will each have 40% interest.

Expected to cost about $1.8bn, the project is planned to be will be built under an independent power producer (IPP) scheme.

Under the terms of the agreement, PT PLN (Persero) will purchase power produced from the project for 25 years, starting from 2021.

Pertamina president director Dwi Soetjipto was reported by Antara News as saying: "We laud PLN for its transparent and competitive bid and for the trust it has laid in the consortium that won the bid of the PLTGU Jawa 1 construction project.

“The project is a concrete evidence of synergy between Indonesias two major state enterprises.”

The project is expected to contribute to the Indonesian government’s aim to have additional 35GW of power generation capacity by 2019 to meet the growing demand for electricity.