AG&P to build, operate LNG terminal in S. Sulawesi

Philippines-based Atlantic, Gulf, and Pacific Company (AG&P) has been assigned to develop and operate a planned LNG receiving terminal in South Sulawesi Province.

AG&P said in a statement last week that the LNG receiving terminal is integrated with a 600 MW combined-cycle power plant (PLTGU) to be developed by Indonesia?s independent power producer PT Energi Nusantara Merah Putih (ENMP) at the Bantaeng Industrial Park (KIBA), in South Sulawesi, where growing number of companies are developing nickel smelters to turn the industrial park to become one of the world?s largest nickel industry center, which will require huge electricity supply.

ENMP jointly with its subsidiaries PT Pasifik Agra Energi and PT Power Merah Putih are responsible for providing prime energy to the KIBA. ENMP and its partners will also strive to develop Bantaeng as the center of LNG distribution for the central and eastern Indonesia region. The LNG terminal and power plant have an estimated total investment of US$980 million, AG&P said in the statement.

"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 600MW power plant itself, which will start operations by mid-2021," said the President Director of ENMP, Westana H. Wiraatmadja in the statement

Bringing together its in-house expertise, AG&P said it will focus on the design, engineering, construction and operation of the LNG receiving terminals at KIBA. The modular components of the terminal will be constructed at its state-of-the-art manufacturing facilities in Batangas, South of Manila, Philippines.

?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,? said AG&P CFO & Commercial Head, Abhilesh Gupta in the statement.

AG&P brings to this important project its outstanding in-house engineering expertise in developing LNG receiving terminals and their supply chains, coupled with its unmatched global track record as a pioneer of high-value modular infrastructure.

?Currently, the project is in the engineering phase and is expected to reach financial close within one year, followed immediately by the construction of the LNG terminal and power plant,? the statement said.

Editing by Reiner Simanjuntak