October 20, 2016 4:01 am JST

Marubeni, Pertamina, Sojitz to win $2bn Indonesian gas plant contract

Indonesia is looking to increase its power generating capacity.

TOKYO -- A consortium of Japanese and Indonesian businesses likely will build and operate a roughly 1.6-million-kilowatt natural gas-fired power station in Indonesia, one of the country's largest run by a private operator.

Indonesian state-owned oil company Pertamina and Japanese trading houses Marubeni and Sojitz took first place earlier this month in bidding for the estimated $2 billion project for state utility PLN. The trio is expected to sign a formal contract after final negotiations.

The plant, to be located in Cilamaya in West Java Province, east of Jakarta, is expected to come online around 2021 and sell electricity to PLN. It will be built and operated by a joint venture in which Marubeni and Pertamina will each hold 40% stakes, with Sojitz owning the rest.

They will also construct a floating liquefied natural gas terminal and pipelines for delivering gas to the power station. Power generation equipment will likely come from General Electric and other suppliers.

Indonesia is firing up efforts to develop power sources amid economic growth, with President Joko Widodo pledging to open plants with an aggregate 35,000 megawatts of capacity by 2019. Most will be coal fired, but demand is strong for gas power plants, which emit less carbon dioxide. The new plant will use a combined firing technology involving both gas and steam turbines.

(Nikkei)

Marubeni Corp.

Japan

Market(Ticker): TKS(8002)
Sector:
Industry:
Distribution Services
Wholesale Distributors
Market cap(USD): 10,823.6M
Shares: 1,737.94M

Sojitz Corp.

Japan

Market(Ticker): TKS(2768)
Sector:
Industry:
Distribution Services
Wholesale Distributors
Market cap(USD): 3,004.68M
Shares: 1,251.5M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.