A Japanese consortium will construct and operate Indonesia’s – and Asia’s – first gas-to-power project by deploying a floating storage and regasification unit.
An essential element of the Jawa 1 project, the Mitsui OSK Lines (MOL)-managed FSRU will operate in West Java, distributing gas under pressure to a local power plant from its anchorage 14 km offshore in the Cilamaya Sea east of Jakarta. The gas will be sent through a 21-km long pipeline.
The power plant is jointly owned by Indonesia’s state-owned Pertamina and trading houses Marubeni and Sojitz. At 293-m long and 43-m wide, the vessel, which will be built by Samsung Heavy Industries, will have an LNG storage capacity of 170,000 m3 and a regasification capacity of 300M cubic feet per day.
According to a statement by the consortium partners, the FSRU will “feature the optimal tank and regasification capacity tailored to the plant’s power generation ability.” Co-financiers for Jawa 1 include seven banks. MOL has a central role in the project which is due to start up in December 2021 and run for a contract period of 25 years.
The Jawa 1 project will be watched closely in a region that most analysts consider to be ripe for FSRUs usually deployed to ‘stranded’ – or smaller – fields where the cost of a fixed platform is not justified or is at least marginal. “As regions worldwide have comparatively unexpected and smaller gas requirements, FSRUs are projected to meet their demands,” noted energy consultant TMR in early 2019. “The low cost of construction required for FSRUs is another [attraction] that is likely to contribute to the development of the global market in coming years.”
Because of the number of relatively remote coastal towns and cities, FSRUs are particularly useful in the Asia Pacific.