Pertamina, Marubeni, Sojitz team win US$2 billion Java-1 power plant contract

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Pertamina, Marubeni, Sojitz team win US$2 billion Java-1 power plant contract

Pertamina-led consortium has secured first place in the bidding for US$2 billion contract for 1.6 GW power plant Java-1. The plant will be located in West Java, Indonesia.

The consortium is led by state energy company Pertamina, which also includes Japanese trading and investment business conglomerates Marubeni and Sojitz.

The rivals were: a consortium led by Adaro Energy teaming up with Singapore-based Sembcorp; a consortium led by PLN unit Pembangkit Jawa Bali teaming up with Mitsubishi and Rukun Raharja.

Last month, Medco Power Generation, which partnered with Korea Power Electric Corporation (Kepco) and Nebras Power Qatar dropped out from the bidding process.

Pertamina expects to close a power purchase agreement with PLN soon, the rivaling consortia can still challenge the result if they see any flaw in the procurement procedures though. 

Java-1 gas fired power plant will be located in Muara Tawar in Bekasi, West Java and it will integrate with a floating storage and regasification unit. PLN estimates the power plant will need gas of 250 million cubic feet per day and for that PLN has secured 688 cargo from Tangguh field in Papua from 2016 to 2033.

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