Coastal Contracts Eyes Growth In Indonesian LNG Market

KUALA LUMPUR, Aug 30 (Bernama) -- Coastal Contracts Bhd is optimistic of completing the US$20.8 million (US$1=RM4.04) purchase of a 49 per cent stake in Indonesia's PT Jaya Samudra Karunia Gas (JSK Group) in the fourth quarter of 2016. With its completion, the leading offshore support vessels (OSV) fabricator stands to further strengthen its growth in Indonesia’s liquefied natural gas (LNG) regasification and storage services market, it said in a statement Monday. Coastal Contracts had on July 30, entered into a Memorandum of Understanding (MOU) with JSK Gas and various vendors to formalise the acquisition. With the MOU, the group would have joint control over JSK Gas’s operating subsidiaries and assets, which are primarily involved in LNG regasification and storage services. JSK Gas, through its 99 per cent-owned subsidiary PT Benoa Gas Terminal (BGT), would be engaged in the operations and transfer of a floating LNG Regasification Unit (FRU) over a five-year contract period. The contract involves the production of regasified natural gas for PT Pelindo Energy Logistik (PEL), to be eventually supplied to a state-owned 200MWh gas-fired power plant in Bali, Indonesia. Also, JSK Gas, through BGT’s 99 per cent-owned subsidiary PT Jaya Transportasi LNG (JTL), has a 10-year charter contract with the same counterparty to build and operate a floating LNG storage unit (FSU) with optional extension of another 13 years. The FSU would receive and store LNG before it is transferred to the FRU for regasification, it said. Meanwhile, the group’s orderbook, as at June 30, 2016 stood at approximately US$567.8 million (RM2.3 billion). -- BERNAMA