Energy World Corp, the company developing LNG projects in the Philippines and Indonesia has set the start-up date of its projects for the end of the current year.
According to the company’s filing on Monday, both projects that were set for start-up by the end of the financial year 2015 have been pushed back for a possible start of operations before the end of the calendar year 2016.
Sengkang LNG project
The Sengkang LNG project in Indonesia faced delays due to the time delay in gas allocation and the subsequent impact on the time to close on the project financing which also requires an offtake agreement for LNG.
The allocation for the Wasambo gas to be utilized for the Sengkang LNG project was granted late October, and as EWC said, further progress was made in LNG offtake negotiations with PLN.
EWC did note that it could expand the facility to 5 mtpa by adding more 0.5 mtpa modular trains in the long term, should the development of gas resources allow.
Philippines LNG hub
EWC revealed the project is in an advanced stage of completion, however, the construction of the Philippines LNG hub and associated works as well as commissioning and commencement of operations is expected before the end of 2016.
The engineering and design aspects of the project have been completed under a deal with Slipform (H.K.) and EWC added that it has into an engineering, procurement and construction contract with the same company valued at US$130 million.
The company said it is currently working on securing additional US$75-100 million financing with Standard Chartered Bank through a domestic bond issuance. A term sheet for the Philippines LNG hub has been signed with Standard Chartered Bank for the financing and the close and drawdown is expected in April 2016.
The 650 MW LNG-fired power plant project adjacent to the LNG hub is also in the advanced stage of completion and the company is looking to bring the first two 200 MW gas turbines into operation as soon as possible.
The start-up is dependent on closing the financing arrangements with the Development Bank of Philippines, Landbank and Asia United Bank with which EWC signed an agreement to fund the first phase of the power plant project’s development valued at US$150 million.
The funds drawdown is expected during the month of March 2016.
LNG World News Staff