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LNG World Shipping

JFE joins Indonesia LNG-import project

Tue 14 Nov 2017 by Karen Thomas

JFE joins Indonesia LNG-import project
Batam relies for gas on Sumatra, where reserves are dwindling

Reports from Japan say JFE Engineering has teamed up with an Indonesian partner to invest US$176M in a 1M tonne a year (mta) LNG-import project on Batam.

JFE has signed a deal with Indonesian power firm Medco Energi to build an onshore LNG terminal on Batam, due south of Indonesia, reports. JFE and Medco will set up a joint venture to import and regasify LNG, selling it on for power generation. JFE will start to design the terminal in the new year. reports that although JFE built around a third of the LNG-import terminals in Japan, it has no previous operating experience. JFE hopes to handle the first imports through Batam in 2022-2023.

Batam has so far imported gas by pipeline from Sumatra, where reserves are running low. The island needs to import 350,000-500,000 kW to cover its energy needs.

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