PT Jawa Satu Power, a special purpose company sponsored by Marubeni Corporation (“Marubeni”), PT Pertamina (Persero) (“Pertamina”) and Sojitz Corporation (“Sojitz”), entered into a long-term power purchase agreement (“PPA”) with the Indonesian state-owned electricity utility, PT PLN (Persero) (“PLN”) for the sale of electricity for 25 years in respect of a project (the “Project”) to construct, own and operate a 1,760MW gas-fired power plant and floating storage and regasification unit (“FSRU”) for electricity sales to PLN.
PLN announced that the Marubeni, Pertamina and Sojitz consortium was the winning bidder and that the project is the first of its kind in Indonesia. Marubeni, Pertamina and Sojitz will proceed with the development of the Project by procuring financing, constructing the power plant, FSRU and associated facilities, and sell electricity to PLN for a 25-year term from its target completion date of 2021.
The Government of Indonesia has set a target to provide an additional 35GW of power capacity by 2019. As a result, there is a high expectation for overseas IPP developers to supply power to meet an increasing demand under the growing economy. Marubeni and our partners will continue to contribute to stable power supply and economic development in Indonesia.
In the power market, Marubeni has expanded its power generation assets to over 10GW (net) in 22 countries, including Japan. Marubeni is committed to contributing to the development of infrastructure in Asian countries by utilizing its extensive experience and know-how. Also, as a new challenge, we will continue to develop “Gas-to-Power” projects such as this project, which include the energy chain of LNG storage and regasification to the production of electricity using the same gas.