Energy World Corporation Ltd. (EWC), a Hong Kong-based integrated energy firm, indicated that the Sengkang liquefied natural gas (LNG) Project on the South Sulawesi coastline in eastern Indonesia is on track to commence operations later this year, the firm said Friday in an announcement on company results for the first half of financial year that ended Dec. 31, 2014.
"We anticipate that we will complete the construction of the first train and associated works and undertake commissioning and commence operations within 2015," EWC said.
Facilities for the initial phase of the Sengkang LNG Project comprise one modular LNG train with a capacity of 0.5 million tons per annum (Mtpa), one LNG storage facility and an LNG loading facility. So far, the equipment, including four cold-boxes, compressors and ancillary equipment, has been installed on site. The tank has been fully slipformed and is now subject to fit out, while jetty works have been finalized and loading arms have been installed.
Meantime, the interconnecting pipework and the installation of the control and instrumentation systems are being completed. Indonesia's state-owned electric firm PT PLN (Persero) has completed the first phase of the interconnecting transmission systems and are on track to supply power to the site prior to the project's commercial operation.
"Project debt financing for the Sengkang LNG Project is being finalized with a leading Indonesian domestic bank. LNG product off-take discussions are being discussed with PLN who require LNG for its power operations in eastern Indonesia," EWC added.
The company added that three more 0.5-Mtpa trains have been planned for the Sengkang LNG Project to bring the total capacity to 2.0 Mtpa pending further development of the Sengkang Production Sharing Contract (PSC), including the Wasambo gas fields, which EWC has a 100 percent interest.
Over in the Philippines, EWC expects to complete the construction, commissioning and commencement of commercial operation of the Philippines LNG Hub and associated works this year, later than the timeline of end 2014/early 2015 as indicated by CEO Stewart W.G. Elliot in June 2014. When operational, the project will be the first LNG terminal, which is located at Pagbilao in Quezon province in Luzon, in the country.
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