Pertamina gets loans for LNG unit

Pertamina gets loans for LNG unit

JAKARTA (JP): Pertamina, the state-owned oil and gas company,
announced yesterday that it has obtained US$969.5 million in
loans from Japan to build a natural gas liquefaction unit in
Bontang, East Kalimantan.

The unit, known as "Train G", will be the seventh in the
Bontang LNG plant and the 13th in the country.

With natural gas supplies coming from gas fields operated
jointly by Pertamina and contractors in East Kalimantan, the unit
is designed to have an annual production capacity of 2.6 million
tons of LNG and its construction is expected to be completed by
the end of 1997.

Pertamina's president Faisal Abda'oe was quoted by Antara as
saying yesterday that the loan agreement was signed in Tokyo last
Friday by Abda'oe and executives of a syndication of Japanese
banks, including Japan Exim Bank, Fuji Bank Ltd., Long Term
Credit Bank of Japan and Credit Lyonnais of France, which are
lead by the Bank of America.

LNG exports from the planned unit are expected to go to Japan,
South Korea and Taiwan.

Through foreign cooperation projects, Indonesia has managed to
establish 12 LNG units, six of which are in Arun of Aceh and the
other six in Bontang.

Last October, Pertamina signed a long-term contract for the
marketing of LNG to Japanese importers. (pwn)