Proposed LNG Terminal in Bojonegoro, Indonesia to Get JBIC Finance

Japan Bank for International Cooperation (JBIC) is likely to provide finance to developers of Indonesia's second land-based LNG receiving terminal by May or June next year, reported news agency Reuters.

"We are in communication with JBIC and they have committed to support the project," Kalla Group's senior LNG project coordinator, Ari Soemarno, told Reuters in an interview.

The proposed terminal that will come up at Bojonegoro is a joint venture between Kalla Group unit Bumi Sarana Migas and Pertamina. The terminal is expected to come online by 2019.

The 4 mtpa terminal is estimated to cost from $700 million to $800 million, Soemarno told the news agency, with front-end engineering design being carried out by the engineering unit of Tokyo Gas.

The group expects to nominate an engineering, procurement and construction (EPC) contractor in December, Soemarno said, referring to bids from Japan's Chiyoda Corp, JGC Corp and IHI Corp.