[Indonesia] Indonesia: Jawa-1 Liquefied Natural Gas-to-Power Project

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escveritas
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[Indonesia] Indonesia: Jawa-1 Liquefied Natural Gas-to-Power Project

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The project entails the construction, operation, and maintenance of a 1,760-megawatt (MW) load-following, combined-cycle, gas turbine (CCGT) power plant and associated facilities. The LNG-to-power project is located about 100 kilometers (km) east of Jakarta on the Javanese coastline. The project will be developed and implemented by an independent power producer, PT. Jawa Power Satu, under a 25-year power purchase agreement (PPA) with the Indonesian utility company PLN.

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ADB Finances Largest Combined-Cycle Power Plant in Indonesia
News Release | 29 April 2019

JAKARTA, INDONESIA (29 April 2019) — The Asian Development Bank (ADB) announced the first drawdown of funds under a private sector financing package totaling more than $305 million invested in Jawa-1, Indonesia’s largest combined-cycle gas turbine (CCGT) power plant.

“ADB is a partner of choice in Indonesia’s strategy to finance low-carbon power generation through private sector participation,” said Mr. Michael Barrow, Director General for ADB's Private Sector Operations Department. “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.”

The project comprises a 1,760-megawatt CCGT power plant and ancillary infrastructure in Cilamaya, Karawang, West Java. ADB’s financing package includes a direct loan of $185 million, and a parallel loan of $120 million provided by the Leading Asia’s Private Infrastructure Fund (LEAP), which is administered by ADB.

Jawa-1 will be one of the first and largest projects in Indonesia using LNG, demonstrating the Government of Indonesia’s commitment to reduce dependency on coal and diesel fuel in favor of cleaner domestic energy sources such as natural gas. The CCGT power plant will supply energy to PT. Perusahaan Listrik Negara (PLN), Indonesia's national power utility. The project is expected to help Indonesia avoid 1.77 million tons of carbon dioxide emissions.

The project was recently awarded 2018 Asia Pacific Gas-Fired Power Deal of the Year by Infrastructure Journal and Project Finance Magazine (IJGlobal), and 2018 Asia Pacific Power Deal of the Year by Thomson Reuters Project Finance International (PFI).

ADB’s support for Indonesia’s natural gas value chain dates back to a 2005 loan of $350 million for the greenfield development of Tangguh natural gas liquefaction facility, which was followed by a $400 million loan for the plant’s expansion in 2016. The Tangguh natural gas liquefaction facility is a likely source of LNG for Jawa-1.

Jawa-1 is expected to power 11 million Indonesian households from 2021, supporting the country’s 100% electrification target by 2024. The project will create about 4,800 jobs during construction and 125 jobs when the plant is operational. It will also offer opportunities to improve women’s livelihoods through targets for women’s employment and training on livelihood and skills development to be monitored by ADB.

LEAP is one of ADB’s cofinancing vehicles dedicated to private sector infrastructure in Asia and the Pacific. Japan International Cooperation Agency (JICA) supports the fund, launched in August 2016, through a $1.5 billion equity commitment. Combined with ADB’s own capital and that of commercial partners, the fund is expected to provide financing of at least $6 billion and enables ADB to boost support for quality and sustainable infrastructure.

ADB estimates that Indonesia needs infrastructure investment of $1.1 trillion for 2016–2030, and $1.3 trillion over that period if climate adaptation measures are included. Accelerating investment in affordable and sustainable energy is critical to achieve the country’s economic and social development goals.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.
escveritas
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Re: [Indonesia] Indonesia: Jawa-1 Liquefied Natural Gas-to-Power Project

Unread post by escveritas »

CCGT Jawa-1 1.760 MW

The IPP Jawa-1 project is a project that integrates Gas facilities with a power plant project consisting of 1.760 MW Combine Cycle Gas Turbine (CCGT), FSRU, gas pipeline between CCGT Jawa-1 and FSRU, and transmission lines that connect the Power Plant with interconnection points.

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The IPP Jawa-1 project is a project that integrates Gas facilities with a power plant project consisting of 1.760 MW Combine Cycle Gas Turbine (CCGT), FSRU, gas pipeline between CCGT Jawa-1 and FSRU, and transmission lines that connect the Power Plant with interconnection points. The LNG supplied by PLN will be received and regasified in the FSRU unit and then delivered in the form of gas to the CCGT Jawa-1 unit through offshore and onshore gas pipes. Furthermore, the electricity generated by the CCGT Jawa-1 will be distributed to PLN for 25 years with the BOOT scheme (Build, Own, Operate, and Transfer) to the Java-Bali electricity system through a 500 kV transmission network from the power plant to the 500 kV PLN substation. CCGT Jawa-1 will sell electricity to PLN with a PPA (Power Purchase Agreement). LNG supply for the IPP Jawa-1 project is the responsibility of PLN. The LNG comes from the Tangguh LNG refinery based on LNG Sale Purchase Agreement (SPA) between PLN and Tangguh.

The IPP Jawa-1 project is located in the village of Cilamaya, Karawang Regency, West Java on 39 hectares of land owned by PT Pertamina Gas (Pertagas). The location of the power plant is located in the SKG Cilamaya area which is also surrounded by facilities owned by PT Pertamina EP and PT Pertamina Hulu Energi. For the location of the Special Facility in the form of a 500 kV switching station Cibatu Baru II / Sukatani and a new 500 kV Dual circuit transmission network connecting the Electric Interconnection Facility to the Cibatu Baru II / Sukatani switching substation located in Bekasi Regency and Karawang Regency. The FSRU will be moored at the Cilamaya sea hearing a distance of 20 km from the beach. The CCGT Jawa-1 and FSRU are connected with 21 km of gas pipelines, 14 km of offshore gas pipes and 7 km of onshore gas pipes. Electricity produced by the CCGT Jawa-1 is channeled to the PLN substation in Sukatani village, Bekasi district through a 52 km transmission line.

To undertake an integrated IPP Jawa-1 project, two project companies are needed, namely PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR). JSP is responsible for designing, constructing, and operating CCGT Jawa-1, transmission lines, substation and switchyard facilities. While JSR is responsible for the design and construction and operation of FSRU facilities that will receive LNG from the Tangguh refinery. The separation of the two project company entities is carried out considering that the project company for the FSRU is considered a national shipping so it must pay attention to the cabotage principle where the composition of shares of domestic national companies must be greater than 51%. In addition, the business nature of IPP and FSRU is different from licensing and taxation, so two separate project company entities are needed. JSP share ownership is owned by PPI consortium, Marubeni, and Sojitz with 40% PPI shares, 40% Marubeni, and 20% Sojitz. While JSR shares are mostly owned by the PPI consortium, Marubeni, Sojitz and the remainder is owned by PT Humpuss Intermoda Transportasi and Mitsui O.S.K Lines (MOL). Ownership in JSR is 26% PPI, Marubeni 20%, Sojitz 10%, Humpuss 25%, MOL 19%.
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