Medco Energi lets contract for Indonesian gas plant

PT Medco Energi Internasional Tbk, Jakarta, through its subsidiary PT Medco E&P Malaka, has let a contract to JEC, a consortium of JGC Corp. subsidiary PT JGC Indonesia and PT Encona Inti Industri, to build a gas processing plant as part of its development of Block A, Aceh Province, in North Sumatra, Indonesia.

JEC will provide engineering, procurement, and construction of the plant, which will have a capacity to process 90 MMcfd of natural gas from Block A for production of sales gas, condensate, and solid sulfur, Medco Energi and JGC said.

The project, which is due to be completed and deliver first gas during first-quarter 2018, follows a January 2015 gas sales agreement with Indonesia’s state-owned PT Pertamina, under which Medco Energi will deliver a total of 198 trillion btu, or 58 billion btu/day, of sales gas to be used primarily by Pertamina’s gas-fired power plant in Aceh, the companies said.

Additional supplies from the plant also will be delivered to an Indonesian state-owned fertilizer company, JGC added.

Executed on a lump-sum turnkey basis, the EPC contract is valued at $240 million.

MedcoEnergi, which holds a 41.67% interest in Block A, operates the block on behalf of partners KrisEnergy Ltd. 41.67% and Japan Petroleum Exploration Co. Ltd. 16.67% (OGJ Online, July 1, 2014; Apr. 23, 2013).

The onshore block has estimated proven and probable gross gas reserves of 462 bcf, Medco Energi said in its latest annual report to investors.

Contact Robert Brelsford at

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