Coastal to conclude acquisition of JSK Gas in Q4

By Romel S. Gurky

Malaysia?s Coastal Contracts Bhd said it is optimistic of making its entry into the fast growing LNG market in Indonesia, following the expected conclusion of the purchase of 49 percent stake in Jakarta-based gas transportation firm PT Jaya Samudra Karunia Gas (JSK Gas) in the fourth quarter of 2016 (Q4) to the tune of approximately US$20.8 million.

Coastal Contracts had on July 30 entered into a Memorandum of Understanding (MOU) with JSK Gas and various vendors to formalize the acquisition. ?Following the successful completion of the deal, Coastal Contracts would have joint control over JSK Gas?s operating subsidiaries and assets, which are primarily involved in LNG regasification and storage services,? Coastal said in a statement Monday.

JSK Gas, through its 99 percent owned subsidiary PT Benoa Gas Terminal (BGT), would be engaged in the operations and transfer of a Floating LNG Regasification Unit (FRU) over a 5-year contract period.

The contract involves the production of regasified natural gas for PT Pelindo Energy Logistik (PEL), to be eventually supplied to a state-owned 200MWh gas-fired power plant in Bali, Indonesia.

Also, JSK Gas, through BGT?s 99 percent owned subsidiary PT Jaya Transportasi LNG (JTL), has a 10-year charter contract with the same counterparty to build and operate a Floating LNG Storage Unit (FSU), with optional extension of another 13 years. The FSU would receive and store LNG before it is transferred to the FRU for regasification.

Editing by Reiner Simanjuntak