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AG&P to build and operate LNG receiving terminal in Indonesia

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PT. Energi Nusantara Merah Putih (ENMP), jointly with the industrial tenants of the Bantaeng Industrial Park (KIBA), has signed a heads of agreement (HoA) in Jakarta, outlining the development plan for a 600 MW combined cycle power plant.

The partnership is fully supported by the Government of Bantaeng Regency, South Sulawesi. Atlantic, Gulf and Pacific Co. (AG&P) has released a statement announcing that it will work with ENMP on the project.

In 2014, after the adoption of Government regulation on banning the export of unprocessed mineral ore, the Bantaeng Regent, KIBA was formed, covering a 3000 ha area (approximately) at the initial stage. The KIBA provides services to industrial tenants and has attracted a variety of both domestic and foreign investments, particularly in smelter development within the regency. As a consequence, there is growth demand for energy that must be met with sufficient installed capacity with a reserve margin to meet the fluctuating and non-linear load demands of nickel smelters that operate in the KIBA.

ENMP – as well as its subsidiaries PT. Pasifik Agra Energi and PT. Power Merah Putih – is responsible for supplying prime energy to the KIBA. In addition to this, ENMP and its partners will also look to develop Bantaeng as the centre of LNG distribution for the central and eastern Indonesia region. The LNG terminal and power plant have an estimated overall investment of US$980 million.

The President Director of ENMP, Westana H. Wiraatmadja, said: "The integration of this project will allow the KIBA supporting industries to accomplish the construction of the LNG receiving terminal immediately. This is a crucial part of the 600 MW power plant itself, which will start operations by mid-2021.”

In the statement, AG&P claims that it will focus on the design, engineering, construction and operation of the LNG receiving terminal at KIBA. The terminal’s modular components will be built at its manufacturing facilities in Batangas, South of Manila, Philippines.

AG&P CFO & Commercial Head, Abhilesh Gupta, said: “AG&P is thrilled to support this nationally important project in Bantaeng. We look forward in short order to LNG being available for the power plant and to industry and consumers throughout Southern Sulawesi and nearby regions. AG&P will work hard to achieve this goal.”

Reportedly, the project is currently in the engineering phase, with financial close expected to be reached within one year, immediately followed by the construction of the LNG terminal and power plant.

By encouraging the development of industrial-based areas such as the KIBA, Bantaeng will become one of the biggest nickel processing centres globally, and will contribute to the economy of both Indonesia and South Sulawesi, particularly the regency itself.

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