JBIC financing Indonesia LNG project
TOKYO — The Japan Bank for International Cooperation is providing roughly 120 billion yen (.16 billion) in financing for an Indonesian liquefied natural gas project taken on by a Japanese consortium.
The government-owned financial institution inked a contract Thursday with a joint venture formed by partners including Mitsubishi Corp., Inpex and a member of the JX Holdings group. The project aims in part to expand LNG production facilities at the Tangguh LNG plant in eastern Indonesia, boosting annual output capacity by 50% to about 11 million tons.
Around 1 million tons of the additional LNG will be supplied to Kansai Electric Power, with the rest going to a state-run Indonesian power company.
Total project costs will apparently run between 800 billion yen and 1 trillion yen. JBIC last lent more than 100 billion yen for an energy project in November 2014. Other banks are leaning toward co-financing the undertaking.
LNG and other development projects have stalled amid depressed commodity prices. But with labor and equipment costs also down, Mitsubishi and others have determined that the Indonesian project will be profitable. Demand is also expected to pick up in emerging nations, and companies have recently been moving toward securing energy rights.
(Nikkei)
source: http://asia.nikkei.com/Business/Companies/JBIC-financing-Indonesia-LNG-project