Japan's JGC Wins Indonesia Gas Processing Plant Contract

Japan’s JGC Corporation announced December 4 that, in partnership with JGC Indonesia, a subsidiary of JGC Corporation, and Rekayasa Industri of Indonesia, it has received an order from state-owned Pertamina for engineering, procurement and construction (EPC) work for a gas processing plant in Bojonegoro, East Java Province, Indonesia.

The turnkey contract is valued at about yen 100bn ($885mn) of which the JGC Group share is yen 40bn.

The plant will process 330mn ft³/d natural gas to produce 172mn ft³/d sales gas and condensate, from the Jambaran - Tiung Biru gas field in the Bojonegoro area developed by PEPC and its partners. The gas will be used mostly by Pertamina's gas-fired power plant in East Java Province.

With rapidly rising demand for gas in Indonesia, the government is pushing energy firms to increase production and it has decided, as one of its important policies, to develop a domestic gas supply network to respond to the increasing energy demand in the country. The project is listed as a strategic program following that policy, JGC said.