General Electric's gas turbines fail Jawa-1 CCGT
The 1,760-megawatt (MW) Jawa-1 combined cycle gas-fired power plant (CCGT) project has missed its commercial operations date (COD) deadline. A part of President Joko “Jokowi” Widodo’s 35,000 MW electrification megaproject for Java and Bali, the power plant project located in Kerawang, West Java, started at the end of 2018 and was slated to be the first floating storage and regasification unit (FSRU)-integrated gas-fired power plant in Southeast Asia. However, that dream has receded further away as it missed its COD deadline at the end of 2021 and again at the end of 2022.1
The roughly US$1.4 billion power plant is operated by Jawa Satu Power (JSP), a joint venture between state-owned energy giant Pertamina through Pertamina Power Indonesia (PPI), a subsidiary of Pertamina New Renewable Energy (PNRE), which focuses on the Jawa-1 CCGT, with 40 percent ownership as well as Japan-based companies Marubeni, with 40 percent ownership, and Sojitz Group with 20 percent ownership.
Meanwhile, the roughly US$0.4 billion Jawa-1 FSRU to be integrated with Jawa-1 CCGT is operated by Jawa Satu Regas, a joint venture between PPI with 26 percent ownership, Humpuss with 25 percent ownerhsip, Marubeni with 20 percent ownership, Mitsui O.S.K. Lines, Ltd with 19 percent ownership, and finally Sojitz with 10 percent ownerhsip.2
JSP appointed General Electric (GE) to supply two 9HA.02 turbines as one of the contractors for the Jawa-1 CGGT project’s engineering, procurement and construction (EPC) consortium, alongside Samsung C&T and Meindo Elang Indah (MEI). Samsung was responsible for some other construction work and MEI was responsible for work on the shore, such as the jetty, gas pipes and cooling pipes.
However, some of the works have caused delays to Jawa-1 CCGT’s completion. The single-shaft combined cycle gas turbine technology used by GE’s turbines was said to be unproven, and the project dealt with frequent on-off troubles, hampering its progress to reach the commissioning stage.3
Another problem plaguing Jawa-1 CCGT’s progress is in the 20-kilometer pipeline that connects the power plant with the FSRU ship. A 14-km pipe section that should have been dug 2 meters under the seabed floated to the surface during the August to September period. The incident was reportedly caused by the EPC contractors opting to only put weights on the pipe rather than completing the proper digging and pipelaying process. The weights were then moved by strong sea currents, causing the pipe to float.4
The Center of Energy and Resources Indonesia (CERI) pointed out that PNRE and GE have provided contradicting information regarding the Jawa-1 CCGT’s COD in 2023. PNRE said that the power plant’s unit 1 and 2 are targeted for COD between August and September 2023, while GE Gas Power Indonesia predicted Jawa-1 CCGT’s COD to be December 2023.5 The contradictory information signaled a potential lack of coordination between Pertamina and the project’s EPC consortium. Furthermore, CERI suspected a politically motivated conflict of interest that led to illegal mark-ups, which may have contributed to technical problems in the project. As a result, the delay has caused the project’s internal rate of return (IRR) to drop from 11.14 percent to far below the “hurdle rate” of 11 percent at 6 percent.6
The delayed progress in the Jawa-1 CCGT has caused PNRE to book losses, but it has also inadvertently benefited PLN. The state-owned electricity company, which was assigned to be the sole purchaser of the electricity produced by the power plant for 25 years, has not yet had to deal with additional operating costs since it is currently facing an electricity oversupply problem. The oversupply is caused by electricity demand that rose below its projected level, partly due to the COVID-19 pandemic’s impact on Indonesian economic growth.7
Meanwhile, the Jawa-1 FSRU has completed a ship-to-ship transfer of 137,000 cubic meters (m3) and 21,500 m3 of liquified natural gas (LNG), respectively, into GTS International-owned LNG carriers Ekaputra 1 and Triputra. The JSR-operated vessel with a loading capacity of 170,000 m3 has also successfully supplied LNG to the Jawa-1 CCGT and completed its first firing phase on Feb. 22, 2022. Jawa-1 FSRU is entirely staffed and maintained by Indonesian workers.8
Several internal sources within PLN have mentioned that the use of new turbines manufactured by General Electric (GE) is the root cause of the continual delays in the Jawa-1 CCGT project in Cilamaya, Karawang, West Java.
The GE gas turbines, intended to power the Jawa-1 CCGT, have been plagued with issues, resulting in system failures. The technology underlying the GE gas turbines is believed to be unproven.
Indications of these issues became apparent during the first fire process of the Jawa-1 CCGT. Since the start of the year, the Jawa-1 CCGT has already failed to perform two first fire processes, with even more failures occurring in the previous year.
As a result, project stakeholders are considering the option to replace GE as the turbine supplier, especially after hearing reports of GE's turbine problems in other countries.
Another source added that such issues could have been avoided if consortium members who hold shares in the Jawa-1 CCGT, such as Marubeni Corporation and Sojitz Corporation, closely monitored the engineering, procurement, and construction (EPC) processes.
Other problems have also been occurring, one of which is the installation of the gas pipeline connecting the power plant to the Floating Storage and Regasification Unit (FSRU). The pipeline, which was supposed to be buried two meters beneath the seabed, unexpectedly floated to the surface and collided with a fishing boat.
Another source added that the project delays have also affected the absorption of gas resources in the Tangguh Field of Papua. Ideally, gas from the Tangguh Field should be stored on the FSRU before being channeled to the Jawa-1 CCGT engines.
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