$1.8bn deal signed for Indonesian gas-fired power plant

Pertamina has announced a deal with state electric utility PLN to build a 1760 MW gas-fired power plant and floating storage and regasification unit (FSRU) in West Java, Indonesia.
The Indonesia-state utility company’s move is in sync with the government’s push to diversify from coal which dominates its power generation sector.

The two parties have signed a power purchase agreement, through which PLN will buy electricity from the plant for 25 years, following its planned completion in 2021. Pertamina holds a 40% stake in the joint venture that will develop the project, Jawa Satu Power, while Japanese trading houses Marubeni and Sojitz own 40% and 20%, respectively.

The power station will be one of the largest gas-fired plants in Asia. Gas will be supplied from the FSRU, a vessel-type offshore facility that stores and re-gasifies liquefied natural gas before the fuel is carried inland.

The Indonesian government aims to add 35,000MW of generation capacity in the period from 2015 to 2019.