Marubeni Finalizes Project Finance Agreement and Begins Construction of Jawa1 Gas-Fired IPP Project in Indonesia

Dec. 07. 2018
Marubeni Corporation

Marubeni Corporation (hereinafter, “Marubeni”) is pleased to announce that PT Jawa Satu Power, which is owned in consortium by Marubeni, PT Pertamina (Persero) (hereinafter, “Pertamina”) and Sojitz Corporation (hereinafter, “Sojitz”), and PT Jawa Satu Regas, whose shareholders include Marubeni, Pertamina, Sojitz and Mitsui O.S.K. Lines, Ltd. (hereinafter, “MOL”), etc. each signed a separate loan agreement in October 2018 for limited-recourse project financing (hereinafter, “the Loan”) for the construction of a gas-fired power plant and an attached FSRU (hereinafter, “Project”). The Project is located in West Java, Indonesia, and is scheduled to begin construction in December 2018.

The Loan is co-financed by the Japan Bank for International Cooperation (“JBIC”); the Asian Development Bank (“ADB”); Mizuho Bank Ltd.; MUFJ Bank, Ltd.; Oversea-Chinese Banking Corporation Ltd.; Crédit Agricole Corporate and Investment Bank; and Société Générale. Private financial institution loans use the insurance of Nippon Export and Investment Insurance Co., Ltd.

This fully integrated Gas to Power project will include the construction and operation of 1,760MW (net) gas-fired power plant and an FSRU with 170,000 m3 storage capacity and a generated power will be dispatched to PT PLN (Persero) (hereinafter, “PLN”) under a 25-year power purchase agreement. The EPC consortium of Samsung C&T (as civil engineering & construction contractor), PT Meindo Elang Indah (as gas-pipeline contractor) and General Electric Company (as turbine and generator supplier) were engaged for the construction of the power plant, while Samsung Heavy Industries was appointed as the FSRU shipbuilder.

With its extensive existing IPP portfolio, the Project, and other future developments, Marubeni looks forward to supporting Indonesia’s development by contributing to the supply of stable electricity in the country. With this experience, Marubeni will continue to develop the Gas-to-Power concept to meet increasing demand throughout the world.

<Outline of Jawa 1 Gas-Fired IPP Project>

1)Gas-Fired Power Plant Portion  
Project Company : PT Jawa Satu Power 
Ownership : Pertamina 40%, Marubeni 40%, Sojitz 20%
Project Site : Cilamaya, West Java province, Java island, Republic of Indonesia
Generating Capacity : 1,760MW
Project Cost : About US$ 1.4 billion
Off-taker : PLN
Contract Period : 25 years
2)FSRU Portion  
Project Company : PT Jawa Satu Regas
Ownership : Pertamina 26%. Marubeni 20%. MOL 19%, Sojitz 10%, the other 25%
Project Site : Cilamaya, West Java province, Java island, Republic of Indonesia
Storage Capacity : 170,000 m3
Project Cost : About US$ 0.4 billion

<Relevant news release>
・31st January 2017
Marubeni Corporation to Enter into Power Purchase Agreement for Jawa 1 Gas-Fired IPP Project in Indonesia