JBIC to Finance Tangguh Expansion Project

Japan Bank for International Cooperation (JBIC) will be extending a loan of $1.2 billion to finance the Tangguh LNG expansion project.

JBIC inked a contract Thursday with a joint venture formed by partners including Mitsubishi Corp., Inpex and a member of the JX Holdings Group, JBIC said in a statement published on Tuesday.

Last week, BP and its partners approved the final investment decision (FDI) pertaining to expansion of Tangguh LNG project in Indonesia.

The expansion project will add a third LNG process train (Train 3) and 3.8 million tonne per annum (mtpa) of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa. The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility, and supporting infrastructure, BP said on Friday.

About 75 percent of the Train 3 annual LNG production has been sold to the Indonesian state electricity company PT. PLN (Persero). The remaining volumes are under contract to Kansai Electric Power Company in Japan, the other foundation buyer for Train 3.

BP Berau Ltd and its affiliates in Indonesia hold a 37.16 percent interest in the project. Other Tangguh production sharing contract partners are MI Berau B.V. (16.30 percent), CNOOC Muturi Ltd. (13.90 percent), Nippon Oil Exploration (Berau), Ltd. (12.23 percent), KG Berau Petroleum Ltd and KG Wiriagar Petroleum Ltd (10 percent), Indonesia Natural Gas Resources Muturi Inc. (7.35 percent), and Talisman Wiriagar Overseas Ltd. (3.06 percent).