ADB Finances Indonesia's Largest CCGT
The Asian Development Bank (ADB) April 29 said it is providing $305mn for construction of Jawa-1, Indonesia’s largest combined-cycle gas turbine (CCGT) power plant.
“This project will support the country’s efforts to strengthen the liquefied natural gas (LNG) supply chain and increase energy security, while helping to reduce power generation costs,” said Michael Barrow, director general for ADB's private sector operations department.
The project comprises a 1.76 GW CCGT power plant and ancillary infrastructure in Cilamaya, Karawang, West Java. ADB’s financing package includes a direct loan of $185mn, and a parallel loan of $120mn provided by the Leading Asia’s Private Infrastructure Fund (LEAP), which is administered by ADB.
The 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. Pertamina and Marubeni each hold a 40% stake in the joint company while Sojitz owns the remaining 20%. The overall cost of the project is expected to be $1.8bn, Pertamina said last year.
The power plant will supply energy to Perusahaan Listrik Negara (PLN), Indonesia's national power utility. BP’s Tangguh natural gas liquefaction facility is a likely source of LNG for Jawa-1, ADB said.
Last December, Japanese shipbuilder Mitsui OSK Lines (MOL) 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. The 170,000 m3 FSRU will be placed 14 km offshore in the Cilamaya Sea and connected to the FSRU via a pipeline about 21 km long.