A heads of agreement (HoA) to build the plant has been signed by ENMP jointly with the industrial tenants of the KIBA.
For the project, ENMP has partnered with Philippines-based, Atlantic, Gulf and Pacific Company (AG&P), that specializes in bringing liquefied natural gas (LNG) to markets.
AG&P will build a LNG receiving terminal, which is part of the power plant construction.
The LNG terminal and power plant are estimated to see a total investment of $980m.
The project, which is currently in the engineering phase, is expected to reach financial close within next 12 months.
ENMP president director Westana Wiraatmadja said: “The integration of this project will allow the KIBA supporting industries to accomplish the construction of the LNG receiving terminal immediately.
“This is a crucial part of the 600MW power plant itself, which will start operations by mid-2021.”
Under the contract, AG&P will responsible for the design, engineering, construction and operation of the LNG receiving terminals at KIBA.
The company will construct the modular components of the terminal at its manufacturing facilities in Batangas, South of Manila, Philippines.
AG&P CFO & commercial head Abhilesh Gupta said: “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.”
ENMP along with its subsidiaries PT Pasifik Agra Energi and PT Power Merah Putih provide prime energy to the KIBA.
Besides, ENMP and its partners aim to develop Bantaeng as the center of LNG distribution for the central and eastern Indonesia region.
Image: AG&P to build and operate the landmark LNG receiving terminal in South Sulawesi. Photo courtesy of Business Wire.
