A consortium led by state energy company Pertamina has secured first place in the bidding for $2 billion contract for 1,600 megawatts power plant Java-1 in West Java, state utility company Perusahaan Listrik Negara said on Thursday (13/10).
Pertamina, which was joined with Japanese trading and investment business conglomerates: Marubeni and Sojitz, outbid rivals consortium led by Adaro Energy and PLN unit Pembangkit Jawa Bali
The rivaling consortia can still challenge the result if they see any flaw in the procurement procedures, but Pertamina is expected to conclude a power purchase agreement with PLN in 45 days, said PLN’s procurement director Supangkat Iwan Santoso.
“This is to ensure that we can meet commercial operation date by 2019 ,” Iwan said.
Adaro teaming up with Singapore-based Sembcorp as well as a consortium Mitsubishi, Pembanngkit Jawa Bali and Rukun Raharja were the remaining rivals for the project after Medco Power Generation, which partnered with Korea Power Electric Corporation (Kepco) and Nebras Power Qatar dropped out from the bidding process last month.
Febriati Nadira, the head of corporate communication at Adaro Energy, said the company will comply with the tender result.
“We are currently focusing on other projects, including Kaltim-3” she said, referring to coal fired steam power plant in east Kalimantan.
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.