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

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...