ATLANTIC, Gulf and Pacific Co. (AG&P) will build and operate a $980-million liquefied natural gas (LNG) receiving terminal in Bantaeng, South Sulawesi that will provide fuel to a 600-megawatt (MW) power plant in the same area in Indonesia, the Philippine-based company said on Friday.
In a statement, AG&P said the modular components of the terminal will be constructed at its manufacturing facilities in Batangas province, south of Manila.
It said the LNG-receiving terminal will serve the industrial tenants of the Bantaeng Industrial Park (KIBA), which has signed a deal on Friday with Indonesia-based PT Energi Nusantara Merah Putih (ENMP) for the development plan of the power plant.
“AG&P is thrilled to support this nationally important project in Bantaeng. We look forward in short order to LNG being available for the power plant and to industry and consumers throughout Southern Sulawesi and nearby regions. AG&P will work hard to achieve this goal,” Abhilesh Gupta, AG&P chief finance officer and commercial head, was quoted as saying in a statement.
ENMP unit PT. Pasifik Agra Energic is the owner and developer of the integrated LNG receiving terminal, which will provide natural gas to the plant, AG&P said.
Another subsidiary PT. Power Merah Putih is the owner and developer of the 600-MW power plant, which will provide energy to KIBA, it added. “ENMP and its partners will also strive to develop Bantaeng as the center of LNG distribution for the central and eastern Indonesia region,” it said.
AG&P said the project is currently in the engineering phase and is expected to reach financial close within a year. It said the construction of the LNG terminal and power plant will follow.
“By encouraging the development of industrial-based areas like the KIBA, Bantaeng will become one of the largest nickel processing centers in the world and will contribute significantly to the economy of Indonesia and South Sulawesi, and particularly the regency itself,” AG&P said. — Victor V. Saulon