The Jawa 1 Gas-Fired IPP Project will consists of a 1,760MW gas-fired power plant and a 170,000m3 capacity floating storage regasification unit (FSRU).

According to Pertamina, the Jawa 1 Gas-Fired IPP Project located in Cilamaya, West Java has entered into the construction phase with ground breaking for the power plant slated to be held in the third week of this month. The Indonesian state-owned oil and natural gas company is taking part in the project through its subsidiary Pertamina Power Indonesia (PPI).

The project is set to become the first integrated LNG-to-Power project in Asia, claimed Pertamina.

The gas-fired power plant to be built with an investment of around $1.4bn will be owned by Jawa Satu Power, the project company formed by Pertamina (40%), Marubeni (40%) and Sojitz (20%). All the power generated from the plant will be purchased by PLN (Persero) for 25 years.

Expected to be commissioned in 2021, the Jawa 1 gas-fired power plant will meet the power consumption needs of about 11 million Indonesian households.

The Java-1 FSRU’s holding company is Jawa Satu Regas owned by Pertamina (26%), Humpuss (25%), Marubeni (20%), Mitsui OSK Lines (19%) and Sojitz (10%). The FSRU will be built with an investment of around $400m.

Pertamina investment planning and risk management director Heru Setiawan said: “The development of integrated gas infrastructure and power plants is carried out to realize clean energy for the country.

“Besides Java-1, Pertamina, through PPI, is also developing IPP projects and other new renewable energy in line with the growth of market demand, both on a national and international scale.”

The lenders for the Jawa 1 Gas-Fired IPP Project are the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), the Asian Development Bank (ADB), Mizuho Bank, Société Générale, MUFG Bank and Overseas Chinese Banking Corporation among others.

A consortium featuring General Electric (GE), Samsung C & T and Meindo Elang Indah were appointed as civil engineering and construction contractor, generator turbine supplier and gas pipeline contractor, respectively. The construction contract for the FSRU was given to Samsung Heavy Industries.