They had two customers, placed orders, hired an engineering firm and had a good deal of financing already. Is this now moving to PNG?
Judge for yorself below, but this is what Morgan Stanley had to say on it:
Why we think EWC is a Credible Partner? We think EWC is able to meet a tighter time line for facility start-time in the IOC agreement because many facility materials were ordered and constructed in connection with the 2mtpa Sengkang, Indonesia LNG export project (due to start in 2011). Indonesia canceled the agreement with EWC in January 2009 due to concerns on its natural gas resources. Hence, IOC and EWC are able to cut the start time of the project to 2013.
1) The engineers: Arup to engineer Indonesian LNG project
Friday, 14 March 2008
ENERGY World Corporation has awarded an engineering contract for its Sengkang liquefied natural gas plant being built in Sulawesi, Indonesia, to Arup Energy.
Arup will provide LNG storage, ship loading, maritime and civil engineering services for the project, which will be Energy World’s second LNG facility and the first plant configured using modular liquefaction components.
The facility will have a capacity of 2 million tonnes per annum built from 500,000tpa units.
The project will include development of Arup’s patented concrete storage tank.
The tank eliminates the need for a liner in the primary container and utilises a simple and cost-effective water vapour barrier on the tank secondary wall.
Arup Energy business leader Brian Raine said the company achieved savings through design, simplicity and speed of construction.
“We avoid the long lead time associated with proprietary liners, membranes and 9 percent nickel-steel. Construction is less reliant on participation of specialist subcontractors,” he said.
Civil construction group Slipform Engineering will construct the tank and Arup will provide all engineering documentation.
The LNG plant is expected to be operational by the end of 2009.
2) Customers and investor: Tokyo Gas invests in EWC projects
Thursday, 25 March 2010
ENERGY World Corporation has this week signed a heads of agreement with Tokyo Gas for a 25% equity investment in EWC’s three main projects in Southeast Asia.
The projects include the operation and expansion of existing gas-fired power generation, natural gas production activities from the Sengkang PSC Block, the construction and operation of a mid-scale modular LNG liquefaction facility for a final capacity of 2 million tonnes per annum, and an LNG marketing company, which is being established.
The heads of agreement provides for an exclusive discussion of 500,000 tonnes per annum LNG offtake by Tokyo Gas after the start of the LNG operations in Sengkang.
EWC said the offtake volume takes into consideration the project’s intention to make the rest of its 1.5Mtpa capacity available to potential domestic demands.
The agreement also provides for Tokyo Gas to have the first right of refusal on investments in other gas, LNG and power projects developed by EWC in Southeast Asia.
3) Another customer: EWC signs up Indonesian LNG customer
Thursday, 10 September 2009
ENERGY World Corporation has signed a memorandum of understanding to supply 1.5-5.0 million tonnes of liquefied natural gas per annum to Indonesian state gas distributor Perusahaan Gas Negara from 2012.
Under the five-year contract, EWC will source gas from its wholly owned subsidiary Energy Equity Epic Sengkang’s production-sharing contract in South Sulawesi.
Gas from the permit will be processed at EWC’s LNG production facility in the Wajo region, South Sulawesi.
EWC is planning to build an LNG plant capable of producing an initial 2 million tonnes per annum before ramping it up to 5MMtpa.
Company chief executive officer Stewart Elliot told the Jakarta Post that EEES would invest $400-500 million on the plant with production expected to start in 12-18 months.
4) Financing: EWC secures financing for Sengkang LNG
Friday, 8 August 2008
AUSTRALIAN gas and power project developer Energy World Corporation has received $US104 million ($A114 million) in funding from five international banks for the Sengkang power and liquefied natural gas plant in South Sulawesi, Indonesia.
The company said Standard Charted Bank and Mizuho Corporate Bank successfully closed the syndication of financing, which involved transferring existing project finance loans and new funding for a 60MW expansion of the project.
The two banks have also been joined in the syndicate by KBC Bank NV Singapore Branch, Natixis and Nordkap Bank AG.
“The Sengkang IPP (independent power producer) project is the first gas-fired IPP project in Indonesia and we are very pleased to have five quality international banks in the Sengkang project financing,” EWC managing director Stewart Elliot said.
Standard Charted Bank head of project finance Conor McCoole said the deal with EWC was the first time in more than a decade that a syndicate of international banks had provided financing to a private power project in Indonesia.
“Despite challenging credit markets, it is positive that quality products such as Sengkang have managed to secure long-term financing,” he said.
The Sengkang LNG facility will have an initial capacity of 2 million tonnes per annum built from 500,000tpa units.
The 60MW expansion is expected to be commissioned before the end of this year and the LNG plant operational by the end of 2009.
6) Expansion: EWC to crank out more power
Wednesday, 13 August 2008
ENERGY World Corporation expects to start commercial operation of a 60-megawatt extension to its Sengkang Power Plant in South Sulawesi, Indonesia, on September 28.
The company said that construction of the gas turbine was on schedule, and commissioning and testing will start later this month.
Electricity from the extension will be sold to Indonesian state utility PT PLN under a long-term contract.
EWC has also started negotiations with PT PLN to further expand the Sengkang plant.
The company had received approval from the Indonesian government for development of an additional 60MW gas turbine generator and a 60MW steam turbine generator, expected to start operating in June 2009 and April 2010 respectively.
EWC added the additional gas turbine will use an additional 15-17 million cubic feet of gas from the Kampung Baru gas field in the Sengkang production sharing contract.
Equipment orders exceed $100 million
CLEVELAND, July 2 /PRNewswire-FirstCall/ — Chart Industries, Inc. announced that its wholly-owned subsidiary, Chart Energy & Chemicals, Inc. (“Chart E&C”), has been awarded significant orders totaling in excess of $100 million from Energy World Corporation Limited (“EWC“) to supply Cold Boxes, Brazed Aluminum Heat Exchangers, Air Cooled Heat Exchangers and ancillary equipment for four 500,000 tons per year Liquefied Natural Gas (“LNG”) Liquefaction Trains to be installed by EWC in Southeast Asia. The trains are intended to provide LNG to meet the growing demand for LNG in Indonesia, the Philippines, China and Japan as the economies in these regions grow. The first two trains are scheduled to come on stream in the second quarter 2009.
“This award from Energy World Corporation further confirms Chart E&C’s position as a world leader in the supply of gas processing equipment to the LNG market,” said Sam Thomas, Chairman, Chief Executive Officer and President of Chart Industries. “We look forward to delivering a successful first project to the Energy World team and to a long-term relationship as the preferred gas processing equipment supplier in support of Energy World’s future LNG business.”
Stewart Elliott, Chairman and Chief Executive Officer of Energy World Corporation Limited said “This order marks another milestone in Energy World’s program for the development of LNG to market in Asia. We believe the combination of Chart E&C’s position as a market leader in the gas processing and engineering equipment supply and Energy World’s Asian experience will enable the successful implementation of this and other projects.”
8) Another supplier: Siemens receives major orders for LNG plant in Indonesia
Siemens is emerging as a key supplier for power and compression solutions to the liquefied natural gas (LNG) industry. Chart Energy & Chemicals, Inc. (Chart) has ordered four motor-driven main refrigerant compressors for four liquefaction trains to be installed in an LNG plant in Indonesia. Siemens will supply four 27-megawatt (MW) electric-motor-driven in-line centrifugal compressors along with a Siemens Robicon frequency converter to be used for motor startup. Furthermore, Siemens will supply two 65-MW gas turbines and generators to the plant owner, Energy World Corporation (EWC), one unit to support the grid through its subsidiary company PT Energi Sengkang, and the other unit to deliver power to the LNG plant. The volume of the orders is over EUR50 million.
These orders are significant for Siemens because they are the first application of large Siemens compressors in the main liquefaction trains of an LNG plant. The four 500,000-ton-per-year liquefaction trains will provide LNG to meet the growing demand in South-east Asia, primarily in Indonesia and the Philippines. The first two trains are scheduled to come on stream in the second quarter of 2009.
“With its unique portfolio and competences Siemens is the only company that can offer one-stop solutions from power to compression,” said Ralf Kannefass, Vice President Oil & Gas at Siemens AG. “As electric LNG applications become more and more attractive we are expecting a rapidly growing market for this innovative technology. With our standardized products for the mid-size LNG market we can also offer the most cost-efficient solutions to our customers.”
“Siemens’ leading-edge technology providing one-stop solutions combined with Chart’s market standing in gas processing and engineering equipment supply and with Energy World’s Asian experience will enable successful implementation of this project in an important and expanding section of the LNG market, which is now recognizing the significance of EWC’s mid-scale modular LNG liquefaction program,” added Stewart Elliot, Managing Director and CEO of EWC. “This program which is based on standardized 500,000 tons per annum permits the phased implementation of LNG projects up to a capacity of 5 million tons per annum in a timely and capital-efficient manner.”
Mr. Oliver Loenker
Press Office Power Generation
P.O. Box 32 20
91050 Erlangen, Germany
Tel: +49 9131 18-7032
Fax: +49-9131 18-7039
9) How it all began: Energy World finalises Indonesian purchase
Wednesday, 25 October 2006
AUSTRALIAN gas and power project developer Energy World Corporation (EWC) says it has finalised its purchase of El Paso Energy International’s Sengkang power and gas assets in Indonesia.
Sydney-based EWC yesterday said it now owns El Paso Energy’s interests in the Sengkang power project, which consists of a gas-fired power plant supplied by its namesake gas field in Indonesia.
The company said it had paid $US61.2 million ($A80.7 million) for El Paso Energy’s 50% interest in Energy Equity Epic (Sengkang) and its 47.5% interest in PT Energi Sengkang.
As a result, EWC now owns 100% and 95% interest in the two assets, respectively.
Last month, the two companies withdrew a litigation between them after reaching the Sengkang purchase and sale agreement by mutual consent.