Indonesia LNG terminal developers expect JBIC financing by June
JAKARTA - Developers of Indonesia’s second land-based liquefied natural gas (LNG) receiving terminal expect to secure project financing from the Japan Bank for International Cooperation (JBIC) by May or June 2016, an official at one of the partner companies said on Tuesday.
Indonesia is the second-largest LNG producer in the Asia Pacific region, yet domestic gas users have suffered from inadequate supply as infrastructure projects have suffered setbacks.
“We are in communication with JBIC and they have committed to support the project,” Kalla Group’s senior LNG project coordinator, Ari Soemarno, told Reuters in an interview.
The planned terminal is a joint venture between Kalla Group unit Bumi Sarana Migas and Pertamina. It is expected to be built in Bojonegoro, not far from Jakarta, and to begin operations by 2019.
The terminal is estimated to cost from $700 million to $800 million, Soemarno said, with front-end engineering design being carried out by the engineering unit of Tokyo Gas Co Ltd .
The group expects to nominate an engineering, procurement and construction (EPC) contractor for the 4-million-tonne-per-year terminal in December, Soemarno said, referring to bids from Japan’s Chiyoda Corp, JGC Corp and IHI Corp.
He said the group’s site and plans allow for capacity to be increased to 10 million tonnes per year.
The land-based terminal will be strategically placed to compete with Indonesia’s two existing floating storage and regasification units, Soemarno said, adding that land-based regasification costs could be up to 40 percent lower than those of a floating terminal.
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