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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, Nikkei.com 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.

Nikkei.com 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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