Chinese-Indonesian consortium to build CNG facilities for PLN

State owned electricity firm PT Perusahaan Listrik Negara (PLN) has signed two contracts with a consortium of Chinese and Indonesian companies to construct, operate and maintain Compressed Natural Gas (CNG) facilities in Gresik, East Java and Lombok, West Nusatenggara.

The two conracts are the Engineering, Procurement, Construction and Installation (EPCI) contract and Operation and Maintenance (O&M) contract.

Both contracts were signed on April 15 at PLN?s headquarters in Jakarta by PLN?s President Director Nur Pamudji and the consortium?s representative Cui Li. The consortium comprises Chinese firms Shijiazhuang Enric Gas Equipment Co.Ltd, Ocean Engineering Design & Research Institute of China International Marine Containers (CIMC) and local firm PT Enviromate Technology International, PLN said in a statement.

Under the contracts, the consortium will carry out the EPCI and O&M works for a CNG compressor in Gresik and a CNG decompressor in Lombok.

The construction of the Gresik CNG compressing facility will take 12 months, while the Lombok decompressing facility will take 24 months. Besides, the consortium will also build a CNG vessel with a capacity of 20 mmscf that will function to deliver the CNG from Gresik to Lombok, where it will be used as fuel at a 90-MW power plant. The construction of the vessel will take 24 months. The consortium will be responsible for the operation and maintenance of the three facilities for three years.

The EPCI contract is worth US$132 million plus Rp 126 billion, while the O&M contract is worth $4.5 million plus Rp 45.4 billion.

According to PLN, the Gresik-Lombok Marine CNG Transportation Project is the first of its kind in the world and the CNG technology is very useful to supply gas to power plants in the areas where gas pipeline does not exist.

Editing by Johannes Simbolon