04-12-2017

JGC awarded EPC contract for gas processing plant project

JGC Corporation announced today 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 approximately100 billion Japanese Yen, of which the JGC Group share is approximately 40 billion Japanese Yen, was awarded by PT Pertamina EP Cepu (“PEPC”), a subsidiary of PT Pertamina (Persero) (“Pertamina”), Indonesia’s state-owned energy company.

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 addtion 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 projeject and active sales activity as an engineering company which is able to respond to the various needs of clients in Indonecia, JGC intends to contribute further to the development of industries and improvement of living conditions in Indonesia.