MOL Commences Operations at Indonesian Gas Power Plant

Japanese transportation giant Mitsui O.S.K Lines (MOL) has initiated commercial operations at its Floating Storage and Regasification Unit (FSRU), which is designated to supply liquefied natural gas (LNG) to a power plant situated in West Java, Indonesia. An FSRU, a specialized vessel or offshore facility, serves as a conduit for transporting and transferring LNG across marine routes. These units receive and store LNG at temperatures of approximately -160°C at sea, subsequently re-gasifying it upon demand. The re-gasified LNG is then transported as high-pressure gas via onshore pipelines and channeled into power plants. FSRUs are often favored due to their relatively low installation costs and shorter construction durations compared to onshore LNG terminals.

In a press release issued on Friday, MOL heralded this venture as Asia's inaugural gas-to-power initiative utilizing an FSRU. Operations officially commenced on March 29th, as confirmed by MOL. The FSRU, named Jawa Satu, is entrusted with the task of receiving LNG for power generation purposes. The LNG is sourced from LNG carriers, facilitating ship-to-ship transfers. Subsequently, the LNG is stored, re-gasified, and supplied to the 1.76-gigawatt PT Jawa Satu 1 power plant located in Cilamaya, West Java, Indonesia. Notably, the power plant also commenced its initial operations on the same day, as outlined by MOL.

Electricity generated at the power plant is contracted to be supplied to PT Pertamina (Persero), Indonesia's state-owned electricity provider, for the ensuing 25 years, according to MOL. The Jawa Satu 1 power plant is jointly owned by MOL, Persero, Japanese trading enterprise Marubeni Corporation, Japanese conglomerate Sojitz Corporation, and other stakeholders. Similarly, the Jawa Satu FSRU is under shared ownership, with MOL, Persero, Marubeni, Sojitz, and additional partners having stakes in the venture.

The inception of the Jawa Satu project was initially disclosed in 2018. The venture is being financed through collaboration with several financial institutions, including the Asia Development Bank, Crédit Agricole Corporate and Investment Bank, Japan Bank for International Cooperation, Mizuho Bank, MUFG Bank, Oversea Chinese Banking Corporation, and Societe Generale Bank & Trust. Private financial institution financing is underwritten by Nippon Export and Investment Insurance.

Mitsui O.S.K. Lines (MOL) is a Japanese transportation corporation headquartered in Toranomon, Minato, Tokyo, Japan. Renowned as one of the largest shipping enterprises globally, MOL boasts a diverse fleet comprising dry cargo vessels (bulk carriers), liquefied natural gas carriers, Ro-Ro Car Carrier ships, oil tankers, container ships (including the mv MOL Triumph, ranked as the fourth-largest containership globally), and container terminals. Despite a strategic shift in focus away from container shipping since April 2018, the iconic alligator logo of MOL remains prominent on containers across ports, roads, railways, and barges worldwide.