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Sep. 24, 2015
Sumitomo Corporation

Contracts Awarded for Construction of Unit 4 of Lontar Coal Fired Steam Power Plant in Indonesia

Supplement:According to new guideline agreed on OECD Working Party on Export Credits and Credit Guarantees held on November 2015, the technology applied to this power plant has been categorized as Ultra Super-Critical pressure.

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) has been awarded an EPC*1 contractfor Unit 4 of Lontar Coal Fired Steam Power Plant (Banten Province, Java, Indonesia; Power capacity: 315 MW; hereinafter, “The Power Plant”) including civil and installation works, by PT. PLN (Persero), an Indonesian state electricity company, through the formation of a consortium with Black & Veatch International Company (hereinafter, “BVI”), a U.S. major engineering company, and PT. Satyamitra Surya Perkasa (hereinafter, “SSP”), an Indonesian construction and engineering company.

This is an extension project located approximately 80 kilometers west of Jakarta, and Unit 4 will be built in the vicinity of existing Units 1 to 3. BVI shall assume responsibility for all aspects of the technology while SSP shall perform the civil and installation work. Sumitomo will be responsible for the equipment supply and commercial leadership of the consortium. The main equipment, the boilers, will be supplied by IHI Corporation, while the steam turbine and power generator will be supplied by Toshiba Corporation. Adoption of this supercritical technology by a power plant with a capacity of 315 MW is unprecedented, and represents a new design that mainly employs Japanese technology. The EPC contract amount is approximately US$450 million, and the construction is scheduled to commence in 2016, with completion in 2019.

In response to rapidly increasing demands for electric power concurrent with economic growth, Indonesia is promoting its “35 GW power plants development plans” to secure additional electric power sources generating 35 GW during a five-year period from 2015 to 2019. The Power Plant is also positioned as one of these power source plans.
In Indonesia, Sumitomo Corporation has an extensive track record of orders received and completion of electric power infrastructure projects, including the Tanjung Jati B coal-fired power plant. Toward the future, Sumitomo Corporation will exert the utmost effort to secure additional orders for other projects under the 35 GW power plants development plans.

The total capacity of power plants built in overseas projects in which Sumitomo Corporation was involved has already exceeded 50,000 MW. The company will further expand its power infrastructure-related businesses on a global scale based on its long track record, thus contributing to their economic development through infrastructure improvement.

*  EPC: Engineering, Procurement and Construction


-Reference material: Power plant location
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