EWC to get financing for power plant expansion, appoints advisors for LNG project

Australian Stock Exchange-listed energy firm Energy World Corporation Limited said its units are in the process of documenting the financing facility for the restructuring of Sengkang power plant financing and the debt financing for the expansion of the power plant.

This facility with a value of US$112 million is being arranged by Standard Chartered Bank, the company said in Annual Financial Report released last week.

The company operates the Sengkang combined cycle135-MW power plant and is in the process of expanding by another 60MW to 195 MW, which is exepcetd to be commissioned by the end of next year.

Gas supply for the power plant comes from EWC-operated Sengkang Gas field, which is located nearby.

The company also said it had confirmed a joint mandate to Standard Chartered Bank and Mizuho Bank to act as advisors and financial arrangers for the debt financing linked to the development of 4x 500,000 TPA LNG plant it planned to build in Sengkang PSC.

The company is planning to build the LNG with a view to start operations by mid-2009 and had placed order for liquefaction plant and major components. The company claimed to have received strong interest from Japan, China and Philippine buyers.

Upstream oil, and gas regulatory body BPMIGAS in a recent interview, however, denied any knowledge about EWC?s plan to build LNG plant in Sengkang and doubted the sufficiency of gas reserves in the block if such plan was ever carried out.(alex)