Japan's MOL Wins Indonesia FSRU Deal
Japanese shipbuilder Mitsui OSK Lines (MOL) has signed a deal for supervision, maintenance and operation services of a floating storage and regasification unit (FSRU) that will be integral to the Jawa 1 gas-fired project in Indonesia, it said December 7.
The 1.76 GW project will be developed by a special purpose company called Jawa Satu Power, owned by Indonesia’s state Pertamina and the two Japanese firms, Marubeni and Sojitz, and will be located at Cilamaya in West Java province. Pertamina and Marubeni each hold a 40% stake in the joint company while Sojitz owns the remaining 20%.
The special purpose company has entered into a long-term power purchase agreement to sell electricity to Indonesian state utility PLN for 25 years. The overall cost of the project is expected to be $1.8bn. Pertamina in a separate statement issued December 8 said it reached financial close for project December 5 and "the next challenge is to ensure the construction phase can be carried out according to the time frame targeted and on budget."
This is Asia's first such gas-to-power project using FSRU, electric generation and gas related facilities will be developed in an integrated manner, MOL said. The FSRU will be built at South Korea’s Samsung Heavy Industries and will come on stream in December 2021.
This project is co-financed by the Japan Bank for International Cooperation, Asia Development Bank, Mizuho Bank, MUFG Bank, Oversea Chinese Banking Corporation, Credit Agricole Corporate and Investment Bank, and Societe Generale Bank & Trust. Financing of private financial institutions is insured by Nippon Export and Investment Insurance.
The 170,000 m3 FSRU will be placed 14 km offshore in the Cilamaya Sea, east of Jakarta. The power plant will be newly constructed on shore near the FSRU site and connected to the FSRU via a pipeline about 21 km long.