MOL Signs Pact for Asia’s 1st Gas-to-Power Project FSRU

December 7, 2018

Mitsui O.S.K. Lines (MOL) has announced that the company has signed deals for construction of a floating storage and regasification unit (FSRU), FSRU services, and financing for the Jawa 1 Gas-Fired Project, through PT Jawa Satu Regas (JSR), a joint company of PT Pertamina (Persero), Marubeni Corporation, and Sojitz Corporation etc.

MOL is entrusted with FSRU construction supervision, maintenance, and operation services.

In this project, PT Jawa Satu Power(JSP), jointly established by Pertamina, Marubeni, and Sojitz, will build, own, and operate a gas-fired power plant with a generating capacity of 1,760MW in Indonesia's West Java province while JSR will build, own, and operate a FSRU at sea to storage and regasify LNG to supply fuel to the power plant.

The power plant and the FSRU will be maintained and operated integratedly and the electricity produced by these facilities will be sold to Indonesian state-owned electricity utility PT PLN (Persero) for over 25 years.

This is Asia's first such Gas-to-Power project using FSRU, electric generation and gas related facilities will be developed in an integrated manner. The FSRU will feature the optimal tank capacity and regasification capacity tailored to the plant's power generation capacity.

This project is co-financed by the Japan Bank for International Cooperation, Asia Development Bank, Mizuho Bank, Ltd., MUFG Bank, Ltd., Oversea Chinese Banking Corporation, Crédit Agricole Corporate and Investment Bank, and Societe Generale Bank & Trust. Financing of private financial institutions is insured by Nippon Export and Investment Insurance.

Through this project, MOL will help ensure a stable supply of electricity in Indonesia, based on its accumulated achievements and experience in LNG carrier and FSRU operation, and promote the FSRU business, which meets diverse customer needs for LNG procurement.

The FSRU will be placed 14km offshore in the Cilamaya Sea, east of Jakarta. The power plant will be newly constructed on shore near the FSRU site, and connected to the FSRU via a pipeline about 21km long.

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