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Construction of Java 1 power plant to begin
Java 1, a combined-cycle steam and gas power plant, the biggest project of its kind in Southeast Asia, along its floating storage regasification unit (FSRU), will enter the construction phase this month with a ground breaking expected to be held in the third week of December.
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The logo of state-owned oil and gas holding company Pertamina (Courtesy of/3dwarehouse.sketchup.com)
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ava 1, a combined-cycle steam and gas power plant, the biggest project of its kind in Southeast Asia, along with its floating storage regasification unit (FSRU), will enter the construction phase this month with a groundbreaking expected to be held in the third week of December.
The power plant project, with a total investment of US$1.8 billion, is to generate 1,760 megawatts (MW), with construction by two different consortiums -- PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR) – in Karawang, West Java.
Pertamina Power Indonesia (PPI), an electricity subsidiary of state energy holding company Pertamina, leads both the JSP and JSR consortiums, with stakes at 40 and 26 percent respectively.
Meanwhile, the other stakeholders in JSP are Japan’s Marubeni and Sojitz Corporation with respective shares of 40 and 20 percent. In JSR, Pertamina is collaborating with Humpuss, Marubeni, Mitsui OSK Lines and Sojitz.
Pertamina investment planning and risk management director Heru Setiawan reiterated that all electricity produced by the power plant, which is expected to be fully operational by December 2021, would be sold to state-owned electricity company PLN.
Java 1 will supply electricity to PLN for 25 years under a power purchase agreement (PPA) at a price of 5.5 US cents per kilowatt hour (kWh).
Both JSP and JSR are financed by a bank consortium consisting of Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance Co., Ltd (NEXI) and Asian Development Bank (ADB).
Meanwhile, the commercial banks involved are Mizuho Bank Ltd, MUFG Bank Ltd, Oversea-Chinese Banking Corporation Ltd, Crédit Agricole Corporate and investment bank Société Générale. (bbn)
