Indonesia: Bojonegoro LNG terminal to receive JBIC funds by June

Proposed LNG receiving terminal in Bojonegoro could obtain project funds from the Japan Bank for International Cooperation by May or June 2016, Kalla Group’s senior LNG project coordinator, Ari Soemarno said.

Kalla Group’s unit Bumi Sarana Migas is jointly developing the project with Indonesia’s Pertamina and Japan’s Tokyo Gas.

Speaking to Reuters, Soemarno said JBIC vowed to get onboard the project that is expected to cost from US$700 million to US$800 million.

Front-end engineering design is being carried out by Tokyo Gas’ engineering unit and the operations are expected to start by 2019.

Engineering, procurement and construction (EPC) contractor for the terminal is expected to be named in December with bids already in from Chiyoda, JGC and IHI of Japan.

The terminal would have an initial capacity of 4 million tons per annum of LNG with an option to expand the capacity to 10 mtpa.

According to an earlier report, natural gas from the terminal will be used to feed the rising domestic demand and natural gas-fired power plants.

LNG World News Staff; Image: Tokyo Gas