Indonesia’s Pertamina Geothermal Energy (PGE) has launched the engineering, procurement, construction and commissioning contract for the initial expansion at its Lumut Balai geothermal project in South Sumatra.

The 55-megawatt Lumut Balai Unit 2 is intended to double geothermal capacity at the existing project to 110 megawatts.

PGE is offering a contract that includes completion of design, construction, installation and commissioning, performance testing and remedying any defects of the complete Lumut Balai Unit 2 geothermal FCRS (fluid collection and reinjection system) and associated power plant.

The deadline for bid submission is 15 January 2021. Prospective contractors must furnish a bid security of $2.2 million.


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New Zealand-based engineering consultancy Thorndon Cook provided engineering design services for the Lumut Balai project under sub-contract to the main EPC contractor, the Hawkins-Toshiba consortium.

Thorndon Cook’s services included process-engineering support for equipment specification and detailed engineering, including stress analysis of steam field piping.

The Japan International Cooperation Agency has loaned funds to the Indonesian government for the ongoing geothermal project expansion — part of which will be applied to the EPCC contract, according to the tender documentation.

Competitive single-stage bidding will be carried out in accordance with the procurement guidelines under Japanese ODA loans.

PGE has advised the United Nations Framework Convention on Climate Change (UNFCCC) of its intention to further expand Lumut Balai with the future addition of Units 3 and 4.

This expansion phase would reduce greenhouse emissions by 581,784 tonnes of CO2 equivalent per annum, according to UNFCCC’s website.