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.
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We have boldfaced that last sentence, for obvious reasons. Even more obvious now that the Indonesians seems to have cancelled this project…