EWC secures loan for Sengkang LNG project

ASX-listed energy firm Energy World Corporation Limited (EWC) reported on Tuesday it had bagged US$60 million loan facility with Standard Chartered Bank (SCB) and Mizuho Corporate Bank Limited (Mizuho).

Under the terms of the loan facility signed on 25th July 2008, the Company entered into a corporate, SCB and Mizuho agreed to provide loan to fund part of the capital expenditure for the Sengkang LNG project or related projects (such as Sengkang power plant further expansion for the supply of electricity to the LNG project).

The facility is partly secured by the assignment of major equipment contracts already placed with Chart Energy & Chemicals Inc and Siemens Aktiengesellschaft for the LNG project.

?As at 8th August 2008, the Company has already drawn down $39,221,950 from the facility as part payment for capital expenditure already committed,? the company said.

The company is planning to build a mini-LNG plant in Sengkang PSC in South Sulawesi with capacity of 4x500,000 tonnes, which is planned to come onstream in 2009.

EWC, through its unit Energy Equity holds 100 percent interest in the block, which is currently producing gas with output entirely supplied to EWC?s 95 percent-owned 138-MW Sengkang power plant, which is located near the block. (denny)