Financing agreement for Tangguh Train III signed
Wednesday, August 3 2016 - 08:17 AM WIB
?For the first time, funding for LNG project involves domestic financing institutions,? Amien said. He said that the financing agreement comes following final investment decision for the project made in July.
The funding facility signed on Wednesday is part of the total US$3.75 billion loans required to finance the estimated $8 billion project.
SKK Migas said domestic lenders providing loans to the project include PT. Bank Mandiri Tbk., PT. Bank Negara Indonesia Tbk., and PT. Bank Rakyat Indonesia Tbk., and PT. Indonesia Infrastructure Finance. Meanwhile, international lenders include affiliates of Mizuho Bank, Bank of China, China Construction Bank, The Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, DBS Bank, United Overseas Bank, BNP Paribas, Credit Agricole Corporate and Investment Bank, Oversea-Chinese Banking Corporation, Korea Development Bank, Shinsei Bank, and KfW Bank.
The upstream authority said that signing of agreement for the remaining loans from Japan Bank for International Cooperation (JBIC) and multilateral lenders will be held later.
The Tangguh Expansion Project will add a third LNG process train (Train 3) and 3.8 million tons per annum (mtpa) of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa. The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility, and supporting infrastructure.
Awards for the project?s key engineering, procurement and construction (EPC) contracts are expected in the third quarter of 2016 with construction to begin thereafter. Operation is expected in 2020.
BP Indonesia holds a 37.16 percent stake in the Tangguh LNG plant. Its partners include MI Berau BV (16.3%), CNOOC Ltd (13.9%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau/KG Wiriagar (10%), LNG Japan Corporation (7.35% ), and Repsol-Talisman (3.06%).
Editing by Reiner Simanjuntak