JAKARTA (RambuEnergy.com) – State-owned energy company PT Pertamina will soon start the construction of the 1,760 MW gas-fired power plant (PLTGU) Jawa 1 following the conclusion of the financing scheme for the project.
The gas power plant will include an LNG receiving terminal and floating storage and regasification unit (FSRU) with a capacity of 170,000 sqm.
Pertamina will develop the project through its subsidiary PT Pertamina Power Indonesia (PPI), a holding entity for two independent power producers (IPPs) Jawa-1 under PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR). The consortium members are Marubeni Corporation, Sojitz Corporation and others.
JSP was formed to maintain the power plant, while JSR will manage the FSRU.
Shearman & Sterling and Widyawan & Partners said they have assisted Pertamina on reaching financial close for a US$1.8 billion integrated gas-fired power station project, with the financers advised by Allen & Overy and Ginting & Reksodiputro.
The LNG-to-power project is located in Cilamaya, West Java Province. Pertamina’s partners include Japanese firms, Marubeni Corp and Sojitz Corp.
The financers include Japan Bank for International Cooperation and Asian Development Bank, as well as a group of commercial mandated lead arrangers, including Credit Agricole, Mizuho Bank, MUFG Bank, OCBC Bank and Société Générale.
The other financial institutions taking part in the financing of the project are Oversea-Chinese Banking Corporation Ltd, Crédit Agricole Corporate and Investment Bank, Société Générale
The project includes the 1,760-megawatt Jawa-1 combined cycle power station and an accompanying 170,000-cubic-metre floating storage and regasification unit (FSRU) that will process shipments of liquefied natural gas or LNG.
The electricity produced will be sold to Persero, a state-owned power utility in Indonesia, for a period of 25 years.
The Shearman & Sterling team was led by partners Bill McCormack, Ben Shorten and Anna Chung, with support from partners Patrick Clancy, Daryl Chew and Simon Letherman.
Director for Investment Planning and Risk Management of Pertamina, Heru Setiawan, said all the electricity produced by the power plant will be supplied to PT PLN for 25 years.
The construction will enter full-scale this month, with groundbreaking scheduled to be held in the third week of the month.
The consortium of PLTGU Jawa-1 has appointed a consortium of General Electric (GE), Samsung C&T, PT Meindo Elang Indah as EPC contractors, procurement of turbine generator and contractors for the gas pipeline. Meanwhile, Samsung Heavy Industries will handle the development of the FSRU.
The commercial operation of the power plan is scheduled for December 2021. (*)