Indonesia lets contract for gas processing plant

Dec. 6, 2017
State-owned PT Pertamina (Persero) subsidiary PT Pertamina EP Cepu (PEPC) has let a lump-sum turnkey contract to a subsidiary of JGC Corp., Yokohama, Japan, to provide engineering, procurement, and construction for a grassroots gas processing plant in Bojonegoro, East Java, Indonesia.

State-owned PT Pertamina (Persero) subsidiary PT Pertamina EP Cepu (PEPC) has let a lump-sum turnkey contract to a subsidiary of JGC Corp., Yokohama, Japan, to provide engineering, procurement, and construction for a grassroots gas processing plant in Bojonegoro, East Java, Indonesia.

Alongside partner PT Rekayasa Industri of Indonesia, JGC will deliver EPC for a gas plant designed to process 330 MMcfd of natural gas containing 1% hydrogen sulfide and 34% carbon dioxide produced by PEPC and partners’ unitized Jambaran-Tiung Biru gas field in Indonesia’s Bojonegoro area, JGC said.

Once in service, the proposed gas plant will produce 172 MMcfd of sales gas, condensate, and other associated gases to be used principally by a gas-fired power plant of Indonesia’s state-owned electric power company in East Java Province, the service company said.

The new gas plant comes as part of the Indonesian government’s strategic program to develop a domestic gas supply network to respond to increased energy demand in the country, JGC said.

JGC valued its share of the total 100 billion-yen EPC contract at 40 billion yen.

The service provider did not disclose details regarding a duration of the contract or an estimated timeframe for the plant’s startup.

Contact Robert Brelsford at [email protected].