Sumitomo : Contracts Awarded for Construction of Unit 4 of Lontar Coal Fired Steam Power Plant in Indonesia
October 05, 2015 at 11:14 pm EDT
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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.
Sumitomo Corporation is a diversified group organized around 7 areas of activity:
- retail distribution of consumer goods (24.4% of net sales): food products, apparel and accessories, pharmaceuticals, building materials, household and decorative items, etc. The group is also developing a real estate business;
- trading of hydrocarbon, mining, chemicals and electronics products (24%): oil, natural gas, copper, gold, silver, zinc, lead, nickel, coal, iron ore, resins, pesticides, petrochemical products, etc.;
- trading of steel products and non ferrous metals (20%): flat and long steel products, tubular products, aluminum products, titanium, etc.;
- distribution of transportation and construction systems and equipments (15.1%): spatial equipments, landing fields, forest machines, motorcycles, mining operating vehicles, etc.;
- telecommunications and multimedia products and services supplies (8.8%): TV wiring, data communication solutions, film distribution services, mobile telephony, Internet access and computing services;
- development and implementation of civil engineering infrastructures (7.6%): power plants, wastewater treatment units, industrial plants, telecommunications centers, etc. The group is also providing logistics services;
- other (0.1%).
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