Indonesian LNG project to secure financing by mid 2016

According to Reuters, the developers of the second onshore LNG receiving terminal in Indonesia estimate that they will secure financing from the Japan Bank for International Cooperation (JBIC) in May or June 2016.

The terminal in question is part of a joint venture (JV) between Kalla Group unit Bumi Sarana Migas and Pertamina, and is likely to be built in Bojonegoro, Indonesia. Operations are expected to commence in 2019.

Ari Soemarno, the Senior LNG Project Coordinator at Kalla Group, reportedly told Reuters in an interview: “We are in communication with JBIC and they have committed to support the project.”

Reuters reports that Soemarno added that the group is likely to choose an engineering, procurement and construction (EPC) contractor for the terminal in December 2015. Currently, bids have been made from Chiyoda Corp., IHI Corp., and JGC Corp.

The terminal is expected to cost between US$700 million and US$800 million. The front-end engineering design (FEED) will be undertaken by Tokyo Gas Co.’s engineering unit. Whilst the initial design is for a 4 million tpy terminal, the terminal is capable of being expanded to a 10 million tpy facility.

Edited from various sources by David Rowlands

Read the article online at: https://www.lngindustry.com/regasification/17112015/indonesian-lng-project-to-secure-financing-by-mid-2016-1638/