Energy World Makes Another US$720 Million Investment in South...

Energy World Makes Another US$720 Million Investment in South Sulawesi
15-JUL-09

JAKARTA: Australian investor Energy World Corporation plans to realize investments in the development of Sengkang gas field, which is integrated with a gas-fired power plant in the same area in South Sulawesi.
Together with several other projects, Energy World will invest a total of US$720 million.

Head of the Investment Coordinating Board (BPKM) M. Lutfi revealed the investor yesterday met with Vice President Jusuf Kalla to discuss their investment plan.

"They have invested in the project and built a 190 megawatt power plant. They plan to increase the capacity by 130 MW to 320 MW," he said after a plenary cabinet meeting yesterday.

Lutfi informed Energy World had invested a total of US$200 million in the project.

As to the development project, Energy World plans to boost investment by US$130 million and wants to develop an LNG field.

The plan has also been reported to the Vice President. To develop the LNG project with a capacity of 2 million tons, Energy World plans to invest US$590 million.

Therefore, the total new investment to be made by Energy World will reach US$720 million.

One Bisnis industry knowing about the LNG industry confided that the value of Energy World's LNG project was cheaper compared to those in the similar projects in other countries. According to him, the value of the LNG project converted to gas volume indeed once reached US$300-US$700 per ton from early 2000s through 2006.

However, he added, since 2007 the project value had surged to US$1,000-US$1,500 per ton. He said such a project value could be minimized if the project was built in a developed area, not in a new area with few infrastructures.

"So, if they can do it [spending US$590 million on a refinery with a total annual capacity of 2 million tons], that will be good. It means the company's project value can reach US$285 per ton." (Bisnis/trd/irs/raf/jao/12)