JAKARTA (TheInsiderStories) - The consortium of state-owned energy producer PT Pertamina, Japan’s Marubeni Corporation and Sojitz Corporation synergy with PT Perusahaan Listrik Negara (PLN) signed power purchased agreement of the Power Purchase Agreement (PPA) for Java IPP power plant-1. The construction of power gas and steam integrated with floating storage regasification unit is the first in Asia Java Power Plant-1 is the first gas-based power plant in Asia that integrates Floating Storage and Regasification Unit (FSRU) with combined cycle power plant.
The PPA agreement was signed between Consortium Chairman and Managing Director of PT Java One Power Ginanjar and PLN’s President Director Sofyan Basir and witnessed by Pertamina’s President Director Dwi Soetjipto. This power plant will be built in Cilamaya, West Java.
“We give the highest appreciation to the PLN for the implementation of the IPP tender Java Power Plant-1, which is open, transparent and competitive, as well as the confidence to Pertamina-Marubeni-Sojitz consortium has been designated as the winner of the Java Power Plant Project IPP-1, “said Dwi Soetjipto in his speech.
The Independent Power Producer Java-1 with a capacity of 1,760 megawatt (MW) with total investments worth US$1.8 billion is one of major infrastructure project for the success of the program of 35,000 MW. Java Power Plant Project IPP-1 is an international collaboration involving 18 international and domestic partners (Indonesia, Japan, Korea, America, and Europe).
Pertamina, along with Japan’s Marubeni and Sojitz Corporation, won the bidding after offering the lowest price of US$5.5 cents per kilowatt hour (kWh) of electricity for PLN to purchase. The consortium outbid a group consisting of local energy company PT Adaro Energy Tbk (IDX: ADRO) and Singapore’s Sembcorp, and another group comprising local firm PT Rukun Raharja and Mitsubishi Corporation.
PLN has previously ensured that the gas supply for Java 1 would be procured from BP Indonesia’s Tangguh field in West Papua. As the electricity firm does not have any gas fields of its own, it will depend on the government and the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).