Chiyoda to join Bontang project

Chiyoda to join Bontang project

TOKYO (Dow Jones): Japan's Chiyoda Corp. said Tuesday that it has received a letter of intent from Indonesia's state-owned Pertamina to draw a basic plan for a liquefied natural gas expansion project at the Bontang terminal in East Kalimantan, Indonesia.

Chiyoda, a major engineering company, and its Indonesian affiliate, PT Chiyoda International Indonesia, expect to be officially awarded the Front-End Engineering Design contract for construction of the ninth LNG processing plant, called Train-I, at Bontang, a Choyoda spokesman said.

He said the award will be valued at several million yen.

Following the completion of the basic plan for the LNG train, Pertamina will open an international tender for the construction. Pertamina plans to increase its LNG output from the Bontang terminal by 2.95 million tons a year to 24.59 million tons/year by mid 2004, according to Chiyoda.

PT Chiyoda International is a joint venture between Chiyoda and Mitsubishi Corp.