Marubeni, Sojitz ink deal for Indonesia LNG power project
Japanese trading houses Marubeni and Sojitz entered into a long-term power purchase deal with the Indonesian state-owned utility PLN for a gas-to-power project that includes the provision of a floating storage and regasification unit.
Pertamina, Marubeni and Sojitz, through a joint company Jawa Satu Power have been awarded a US$1.8 billion contract to build, own and operate a 1,760MW gas-fired power plant and an accompanying FSRU.
Pertamina and Marubeni each hold a 40 percent stake in the joint company while Sojitz owns the remaining 20 percent.
The electricity produced by the project will be sold to PLN for a period of 25 years, according to Marubeni’s statement.
Project partners will proceed with the development of the project by procuring financing, constructing the power plant, FSRU and associated facilities with an expected completion in 2021.
The government of Indonesia has set a target to provide an additional 35GW of power capacity by 2019. As a result, there is a high expectation for overseas IPP developers to supply power to meet an increasing demand under the growing economy.