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AKRA revealed the formation of the JV with BW FSRU VII, Andalanesa Energi Primer, in several announcements to the stock exchange.
According to the stock exchange filings, AKRA and BW will each hold 49 percent in the JV, while AKRA’s parent Arthakencana Rayatama (AKRT) will hold 2 percent.
BW serves as a strategic partner of AKRA in the development, operation, and management of the FSRU-based project.
Moreover, AKRA said the formation of the JV is a strategic investment by the company to support and maintain the continuity of gas supply in the Java Integrated Industrial and Port Estate (JIIPE), which is a Special Economic Zone (SEZ) located in Gresik, East Java.
The project is expected to meet gas demand, particularly in East Java, and on the island of Java in general.
It is worth noting here that AKRA entered into a joint development agreement in 2023 with a unit of UK-based energy giant BP to develop a regasification terminal in Indonesia’s East Java.
AKR said at the time that it expects the LNG import project to come onstream circa 2027 to “coincide with the start-up dates of many major gas consuming projects in JIIPE.”
170,000-cbm FSRU
According to AKRA, the establishment of the JV with BW was carried out alongside plans to purchase or construct an FSRU at South Korea’s HD Hyundai Heavy Industries.
AKRA also said that BW Constellation I has signed an agreement with HD Hyundai Heavy to order one 170,000-cbm FSRU in connection with the development of the JIIPE LNG import project.
The project is expected to begin commercial operations in the third quarter of 2029.
Shipbuilding sources told LNG Prime on Wendesday that BW LNG, a unit of BW, has ordered one FSRU at HD Hyundai Heavy.
HD Hyundai Heavy said on Wednesday that it will build one LNG FSRU for an unidentified owner in Asia.
The unit is scheduled for delivery by May 2029.
HD Hyundai Heavy said the contract is worth 492.8 billion won, or approximately $320 million.
LNG Prime invited BW to comment on the matter.