Japan, Indonesia inaugurate, sign $4b energy projects

President Susilo Bambang Yudhoyono and ’s Prime Minister Shinzo Abe inaugurated on Monday billions of dollar worth of projects in the energy sector that were financed by the Japanese government.

 

Besides, both witnessed the signing of several contracts to develop ’s energy sector.

 

Investment for the energy projects that have been completed and will be realized using the Japanese funds total US$3.977 billion, according to the Ministry of Energy and Mineral Resources.

 

Abe is visiting for three days starting Sunday.

 

The projects inaugurated by Susilo and Abe include the South Sumatra-West Java gas pipeline owned by state owned gas distribution company PT Perusahaan Gas Negara (PGN). Japanese lending agency JBIC covered 34 percent of the investment for the project totaling $1.357 billion. The pipeline has started operation. 

 

Another project is the 2x240MW and 1x260MW Cilegon combined cycle power plant in Banten, owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN). The power plant was built by Japanese firm Mitsubishi Corp. using $345 loan from JBIC. The power plant will start operation commercial operation this month.

 

Besides, they inaugurated the 2x100MW  Tarahan coal-fired power plant in Lampung. The power plant owned by PLN was built by Japanese firms Marubeni Corp., Mitsui and French firm Alsthom Power using a $268 loan from JBIC. The power plant is expected to come on stream in September this year.

 

Indonesian oil and gas companies, state owned PT Pertamina and publicly-listed PT Medco Energi International signed an agreement with Japanese firm Mitsubishi Corp to build an LNG plant in Senoro, Central Sulawesi . The firms will spend $840 million to extract gas and another $1.167 billion to build the plant that will process the gas into LNG with the Japanese firm as the off-taker.

 

Susilo and Abe also witnessed the signing of several accords for projects in the power sector, including the power purchase agreement (PPA) for the 1x600 MW Cirebon coal-fired power plant in West Java and the memorandum of agreement for the 1x800MW Paiton 3-4 coal fired power plant in East Java. The Cirebon power plant owned by PLN will be built by Japanese firm Marubeni Corp. while the Paiton 3-4 power plant by PT Paiton Energy Company.

 

Meanwhile, the consortium of PT Pertamina Geothermal Energy, MedcoEnergi, ORMAT and Itochu Corporation signed a head of agreement with PLN for the development of the 330MW Sarulla geothermal power plant in North Sumatra .

 

The Research and Development Center of the Ministry of Energy and Mineral Resources, JBIC, PT Bumi Resources, Kobe Steel and Sojitz Corporation signed an agreement to cooperate in carrying out a feasibility study on brown coal liquefaction project in Satui, South Kalimantan .

 

Besides, Pertamina and Itochu signed the certificate of acknowledgement for an LPG project in Indramayu, West Java worth $300 million.

 

The ministry also said there are now nine technical cooperation projects financed by the Japanese government to protect the environment and to develop power, geothermal and coal sectors. (Godang)