JGC awarded EPC contract for gas processing plant in Indonesia
YOKOHAMA, Japan — JGC Corporation announced that, in partnership with JGC Indonesia, a subsidiary of JGC Corporation, and PT Rekayasa Industri of Indonesia, it has received an order for engineering, procurement and construction (EPC) work for the construction of a gas processing plant in Bojonegoro, East Java Province, Indonesia. The lump-sum turn key contract, valued at approximately 100 B Japanese Yen, of which the JGC Group share is approximately 40 B Japanese Yen, was awarded by PT Pertamina EP Cepu (PEPC), a subsidiary of PT Pertamina (Persero), Indonesia’s state-owned energy company.
|Photo courtesy of JGC Indonesia.
The project contract calls for the design and construction of a plant to process 330 MMscfd natural gas (with 1% H2S and 34% CO2 content) for the production of 172 MMscfd sales gas, condensate and so on, from natural gas produced by the unitized Jambaran-Tiung Biru gas field in the Bojonegoro area developed by PEPC and its partners.
The Indonesian government has decided, as one of its important policies, to develop a domestic gas supply network to respond to the increasing energy demand in the country, and the project is listed as a strategic program following that policy. Plan is for the produced sales gas to be used principally by a gas-fired power plant of Indonesia’s state-owned electric power company in East Java Province.
Since the 1970s, JGC has carried out numerous projects for Pertamina. JGC understands that the contract has been awarded to JGC on the basis of its experience in Indonesia and the high evaluation accorded to its project execution capabilities, in addition to its cost-competitive proposal.
In Indonesia, some additional big projects, such as brown and green field refinery projects planned by Pertamina, are under consideration. Through successful completion of this project and active sales activity as an engineering company which is able to respond to the various needs of clients in Indonesia, JGC intends to contribute further to the development of industries and improvement of living conditions in Indonesia.
Indonesia, home to 260 MM people on 14,000 islands across a vast archipelago, is estimated to become the seventh-largest economy in the world by 2030, with such growth expected to boost the nation’s energy consumption by 80% from present levels.<sup>1</sup>
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The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
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