JGC to construct gas processing plant in Indonesia for Medco

JGC Indonesia and regional contractor Encona Inti Industri have secured a JPY27bn ($241m) engineering, procurement and construction (EPC) contract for a gas processing plant in Aceh Province, Sumatra, for PT Medco E&P Malaka.

The proposed plant will process 90Mscfd natural gas for production of sales gas, condensate, and solid sulphur from natural gas produced by Block A developed by Medco and its partners in Aceh.

A gas-fired power plant of Indonesia’s state-owned electric power company in Aceh and a fertiliser company will use gas produced at the new plant.

The Block A gas project is slated for completion in the first quarter of 2018. First gas from the plant is expected to start in the first quarter of 2018.

Under a gas sales agreement signed in January 2015, Medco plans to deliver 58 billion British thermal units (btu) per day, 198 trillion btu over 13 years to Pertamina.

MedcoEnergi CEO Roberto Lorato said: "This is just the first phase of our plans to develop and monetise the resources on this block."

MedcoEnergi will operate the project with a 41.67% interest. Remaining partners are KrisEnergy (41.66%), and Japex (16.67%).

JEC is a consortium of PT JGC Indonesia and PT Encona Inti Industri. In 2015, the company developed the Donggi Senoro LNG plant in Central Sulawesi.

JGC is currently expanding its overseas EPC subsidiaries, and proposes to further improve JGC Indonesia’s project execution capabilities through execution of this project.