PLN appoints Black & Veatch to build 315 MW Lontar extension | Black & Veatch

PLN appoints Black & Veatch to build 315 MW Lontar extension

PLN, the national electricity utility, has selected Black & Veatch to build the 315 megawatt (MW) Lontar Extension Coal Fired Steam Power Plant project (Lontar).

Together with consortium partners Sumitomo Corporation (Sumitomo) and PT Satyamitra Surya Perkasa (SSP), Black & Veatch will bring leading project management skills to deliver the EPC (engineering, procurement and construction) contract on schedule. Together, the trio has a proven track record of building reliable power facilities on time as well as meeting and exceeding performance expectations in Indonesia.

“The consortium will safely construct a world-class power plant within the schedule and budget,” said Mark McDermott, Vice President and Project Director, Black & Veatch. “As the EPC technical leader, we will share and transfer critical knowledge to our local professionals and partners, PT SSP and PLN.”

Lontar is Black & Veatch’s first EPC contract directly with PLN. Yet, the company has served PLN for more than 40 years. This includes multiple engineering and services projects in the 1980s and EPC projects in the 1990s. Most  recently, Black & Veatch won an engineering services contract to help accelerate the development of 2GW of electricity throughout the country. Moreover, since 1969, Black & Veatch has contributed to almost 15,000 megawatts (MW) of installed capacity throughout Indonesia. In addition, the company has worked closely for many years with partners like PT SSP.

As part of Lontar, Black & Veatch will again implement a “constructability” program. Constructability is an advanced project management technique applied in the proposal, engineering, and procurement stage as well as throughout the build process to return a more predictable and better construction timeline. It provides a construction driven process and mind-set to the entire project process from conceptual engineering, through fabrication and shipping.  All work is planned with  construction in mind.

“Constructability has been successfully utilized on previous projects in Indonesia. Freely sharing best practices among all project partners is the key to its success,” said Kevin Bachler, Construction Operations Manager, Black & Veatch.

“All partners must draw from their past experiences to make sure knowledge and lessons-learned are integrated into the design and equipment supply, which in turn supports timely construction.”

Kevin Bachler, Construction Operations Manager, Black & Veatch

It is a proven approach that Black & Veatch has shared for a number of years with PT SSP’s local engineers and professionals both on site as well as in formal classroom environments. It was actively used to successfully deliver Tanjung Jati B Units 3 & 4 ahead of schedule in 2012, an award-winning addition of 1,320 MW to the Java-Bali grid featuring Sumitomo, Black & Veatch and PT SSP.

“Constructability puts a special focus on construction in areas often removed from what’s happening on the ground, like the engineering and design process. The result is a much smoother experience for the people on site: reducing errors, delays and cost overruns,” said Jim Schnieders, Senior Vice President and Managing Director, Power EPC, Asia based in Jakarta. “Beyond technology and hardware, it’s a powerful example of how companies like Black & Veatch transfer knowledge that creates a sustainable benefit to the engineering and construction community in Indonesia.”

Constructability is a key component for Lontar as it is to be built alongside the existing and fully operational units. This calls for careful planning.  As a result, the Lontar expansion will allow PLN to supply a more timely electricity boost to the people of Jakarta ahead of developing greenfield sites. Lontar will also use supercritical coal-fired technology to optimize efficiency and output.

Black & Veatch is the topline EPC provider and overall technical lead. The company is also providing equipment supply as well as construction management and commissioning. Sumitomo is responsible for the boiler and steam turbine supply. PT SSP is responsible for the erection of the entire facility.

The site is located in the Kemiri district, Tangerang Regency, Banten Province.

Editor’s Notes:

  • PLN selected Black & Veatch to perform “Engineering Services for the Mobile Power Plant and Fixed Gas Engine Power Plant Project.”
  • Black & Veatch employs more than 100 professionals in Indonesia and has tripled the size of its local staff in less than two years.
  • Since 1969, Black & Veatch has undertaken nearly 100 energy and water projects across 24 provinces throughout Indonesia. In power generation alone, the company has contributed to almost 15,000 megawatts (MW) of installed capacity throughout the country.
  • The award-winning Tanjung Jati Unit 3 & 4 added an additional 1,320 MWs to the electric grid in 2012 and is an example of a recently completed project by Black & Veatch, Sumitomo and PT SSP. The entire plant, including the recent expansion, has the capacity to reliably provide approximately 12% of the electricity available on the Java-Bali grid.
  • Supercritical coal-fired technology requires less coal per megawatt-hour compared to conventional coal combustion, leading to lower emissions (including carbon dioxide and mercury), higher efficiency and lower fuel costs per megawatt.

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