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PP, Wartsila Finland sign US$144M EPC contract for PLTMG Bangkanai stage-2

Image credit : Wartsila

JAKARTA ( – Consortium of state-run construction firm PT Pembangunan Perumahan Tbk (IDX:PTPP) and Wartsila Finland Oy and PT Wartsila Indonesia on Friday (Mar 17) has signed engineering, procurement and construction (EPC) contract to develop second phase development of gas power plant PLTMG Bangkanai (Peaker) Stage-2.

The EPC contract is worth US$144 million. The power plant with installed capacity of 140 MW is located in Karedan village, Lahei subdistrict, North Barito Regency in Central Kalimantan Province.

The EPC contract is one of among tens of EPC contracts that were signed by PLN and the EPC contractors on Friday. The power plant expansion is part of PLN’s move to support the government’s 35 GW installed capacity of power plants projects to be developed within 5 years, although some of the projects are likely to be completed beyond 2019.

The first phase of the power plant, PLTMG Bangkanai 155 MW, has been developed. The power plant is the first peaker power plant in Kalimantan, utilizing compressed natural gas (CNG). Once the second phase project is completed, PLTMG Bangkanai installed capacity will increase to 295 MW.

PLTMG Bangkanai power plant has begun supplying 25 MW of electricity to the Central and South Kalimantan (Kalsengteng) power grid system, utilizing the 150 kilo Volt (kV) transmission from Bangkanai subsystem (GI) to Muara Teweh (GI), located in North Barito Regency, through GI Buntok in South Barito and GI Tanjung in Tabalong Regency.

The electricity from PLTMG Bangkanai helps resolve power shortage in the area and helps meet the growing electricity demand.

PLTMG Bangkanai phase-1 was also developed by consortium of Wartsila Finland Oy and PT PP Tbk (PTPP). The project construction began in 2013. The first phase of the project was signed by former president director of PLN Nur Pamudji and Regional Director of PT Wartsila Finlad Oy, Sushil Purohit and director of PTPP Harry Nugroho.

The operation of PLTMG Bangkanai allows PLN to connect four power grid system which was previously disconnected, namely Muara Teweh (8 MW), Buntok (10 MW), Batu Licin (12 MW) and Sampit (33 MW). These power grid system has now interconnected with Kalselteng power grid system.

The operation of PLTMG Bangkanai replaced the use of diesel fuel and allows PLN to save up to Rp1.6 trillion per annum, according to PLN.

PLN and Wärtsilä cooperation

In mid September 2016, Wärtsilä and PLN signed a Memorandum of Understanding (MoU) in conjunction with Indonesian State Owned Enterprises Minister Rini Soemarno’s visit to Finland. With this agreement, both parties agree to cooperate on the development of 500 megawatts (MW) of power generation solutions and related small scale LNG storage and regasification infrastructure in Indonesia.

This power generation is forecasted to be contracted and installed as several projects during the next two years. Another major aspect in this agreement is the emphasis put on further developing local Indonesian capability in power projects execution, knowledge transfer and development of local skills.

“With this MoU, Wärtsilä is also pleased to express its strong commitment towards the development of Indonesian manufacturing skills and knowledge transfer as it is the basis for a mutually beneficial and long relationship,” Javier Cavada, President Wärtsilä Energy Solutions in a statement back in September.

Wärtsilä has been present in Indonesia for more than 30 years during which it has installed more than 3GW of power generation capacity. Some of the recent projects using Wärtsilä’s internal combustion engine technology are the 200MW dual fuel Pesanggaran plant, 184MW Arun power plant and the Bangkanai 150MW power plant. (*)

By Roffie Kurniawan (email:

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