Energy World Corporation said it has recently signed a gas sales deal with Perusahaan Daerah Sulawesi Selatan in Indonesia.
Under this agreement, Energy Equity Epic (Sengkang), a unit of EWC will supply 40- 70 mmscfd initial feedstock gas for the first train of the Sengkang LNG modular plant from four wells within Walanga, Sampi-Sampi, and Bonge gas fields, the company said on Tuesday.
Perusda Sulsel, a regional government owned unit, acting as the gas off-taker, can directly purchase the gas from production sharing contract operator without going through an open tender process, according to EWC.
Simultaneously, Perusda Sulsel together with PT South Sulawesi LNG then will jointly sell the LNG to PT PLN (Persero).
EWC said the contract will enable the company to finalize its negotiations with PLN for the supply of LNG and thereafter to close the project financing with Bank Mandiri and its banking syndicate.