MOL inks FSRU deal for Indonesian LNG-to-power project
Mitsui O.S.K. Lines (MOL) signed deals for the construction of a floating storage and regasification unit, FSRU services, and financing for the Jawa 1 gas-fired project in Indonesia.
Under the deals signed with Jawa Satu Regas (JSR), jointly established by Pertamina, Marubeni, and Sojitz, MOL is entrusted with FSRU construction supervision, maintenance, and operation services.
Jawa Satu Power (JSP), another joint venture set up by Pertamina, Marubeni, and Sojitz, will build, own, and operate a gas-fired power plant with a generating capacity of 1,760 MW in Indonesia’s West Java province, while JSR will build, own, and operate the FSRU to provide feed gas to the power plant, MOL said in its statement.
The project expected to start operation in December 2021, the statement reads.
The 170,000-cbm FSRU will be located 14 km offshore in the Cilamaya Sea, east of Jakarta, while the power plant will be constructed on the shore near the FSRU site and connected via a pipeline about 21 kilometers long.
The FSRU with a regasification capacity of 300 million cubic feet per day will be built by the South Korean shipbuilder Samsung Heavy Industries.
The electricity produced by these facilities will be sold to Indonesian state-owned electricity utility PLN (Persero) over a 25-year period.
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.
The project is co-financed by the Japan Bank for International Cooperation, Asia Development Bank, Mizuho Bank, MUFG Bank, Oversea Chinese Banking Corporation, Crédit Agricole Corporate and Investment Bank, and Societe Generale Bank & Trust.
Financing of private financial institutions is insured by Nippon Export and Investment Insurance, MOL said.