Nusantara Regas secures loan for West Java FSRU

PT Nusantara Regas, a joint venture company of PT Pertamina and PT Perusahaan Gas Negara Tbk (PGN), has secured loan worth US$100 million from PT Bank Mandiri Tbk to finance the operation of the West Java Floating Storage and Regasification Unit (FSRU) to be deployed at the Jakarta bay.

The loan agreement was signed on Wednesday by Director for Corporate Banking of Bank Mandiri, Fransisca Nelwan Mok, and President Director of Nusantara Regas, Hendra Jaya, at Plaza Mandiri.

Bank Mandiri said in a statement issued after the agreement signing that Nusantara Regas will use the loan to support the operation of the FSRU including for ensuring the supply of gas which will further be distributed to a number of power plants, namely gas power plant (PLTGU) Muara Karang and PLTGU Tanjung Priok in north Jakarta.

The loan will have a tenor of one year and can be extended depending on the need of Nusantara Regas.

Fransisca said the loan indicates the support of the bank for the development of downstream gas sector which will ultimately help meeting the gas needs of the national industries in West Java area.

She said the presence of the FSRU will facilitate the delivery of gas from gas resources in outside Java island to manufacturers in west Java area. "?We realize that the operation of the FSRU is vital in order to resolve shortage of gas for national industries. We hope to continue to provide support to this (oil and gas) industry,? said Fransisca.

?Certainly, we can use the loan facility to support our the long term business development,? said Hendra Java.

The conversion of the FSRU from a tanker vessel at Sembawang Shipyard in Singapore has just been completed on March 17 and it is expected to sail to Jakarta bay later this month. The West Java FSRU is owned by Golar Energy of Norway and is leased to Nusantara Regas. The operation of the FSRU is now expected to begin in July this year, delayed from initial plan of early April.

Editing by Roffie Kurniawan