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)