Join our daily newsletter At The Bell to receive exclusive market insights
- Energy World Corporation (EWC) has welcomed the resolution of a four-year land matter involving company property in Indonesia
- The Planology Department of Ministry of Forestry has reconfirmed that the land which a company subsidiary built on is industrial
- This remapping will allow the subsidiary to restart the project’s construction, as well as commercial finance and offtake discussions
- The company expects to achieve its first LNG sales from the project in 18 to 24 months’ time
- Energy World Corporation closed 11.7 per cent higher, to trade at 10 cents per share
Energy World Corporation (EWC) has welcomed the resolution of a four-year land matter involving company property in Indonesia.
Several years ago, company subsidiary PT South Sulawesi LNG began constructing a mid-scale modular LNG facility on Indonesian land purchased by Energy World.
In June 2017, the company was informed that the plant was being built on forestry land, not industrial land. This promptly halted all activity and construction at the site to this day.
After a four-year delay, the Planology Department of Ministry of Forestry has formally completed the review of the historical land documentation, and the remapping of the land area. The relevant authorities have now reconfirmed that the land is indeed industrial, and not forestry land as was incorrectly claimed.
The company has been encouraged to restart its construction at the project, as well as commercial discussions related to project financing and LNG offtake agreements.
Energy World’s LNG facility in South Sulawesi is mostly complete, although it will take approximately US$35 million to $50 million (roughly A$45.5 million to A$65 million) to bring the first 500,000 tonnes per annum of LNG production online.
The company is confident that it will finance this through project debt. Subject to some negotiation with third parties, Energy World expects its first LNG sales from the project in 18 to 24 months’ time.
In addition to having its land re-certified, Energy World was recently awarded a 20-year extension on its gas operations in South Sulawesi. This positions the company to fully finally develop the commercial opportunities it once foresaw for the region.
Energy World Corporation closed 11.7 per cent higher, to trade at 10 cents per share at 4:10 pm AEDT.
