Development and financing of the $1.7 billion integrated LNG-to-power project located in West Java Province, Indonesia.

Shearman & Sterling advised a consortium led by Pertamina Power Indonesia, Marubeni Corporation and Sojitz Corporation on the deal

The project achieved financial close on December 5, 2018.

This transaction represents the first-ever LNG-to-power project in the Asia Pacific region and includes the integrated financing of a newbuild 170,150 m3 floating storage regasification unit (FSRU) and a two-unit 1,760MW greenfield gas-fired independent power plant (IPP). Shearman & Sterling played a key role in the development of an innovative contractual and financing structure, which is a first in the region. The electricity produced will be sold to PT PLN (Persero), a state-owned power utility in Indonesia, for a period of 25 years.

The financiers included Japan Bank for International Cooperation (JBIC) and Asian Development Bank (ADB), as well as a group of commercial mandated lead arrangers, including Credit Agricole, Mizuho Bank, MUFG Bank, OCBC Bank and Société Générale, benefitting from insurance provided by Nippon Export & Investment Insurance (NEXI). The sponsors are advised by ING.

The Shearman & Sterling team was led by partners Bill McCormack (Picture) and Ben Shorten (both Singapore-Project Development & Finance) and Anna Chung (Seoul-Project Development & Finance) and included associates Jean-Louis Neves Mandelli, Lachlan Clancy and Bilyana Belcheva (all Singapore-Project Development & Finance) as well as trainee Chris Collins (Singapore-Project Development & Finance). Specialist advice was provided by partners Patrick Clancy (London-Finance), Daryl Chew (Singapore-International Arbitration) and Simon Letherman (London-Tax), counsel Leona McManus (London-Finance) and associate Brandon Bang (Singapore-International Arbitration).

 

Involved fees earner: Bill McCormack – Shearman & Sterling; Ben Shorten – Shearman & Sterling; Anna Chung – Shearman & Sterling; Jean-Louis Neves Mandelli – Shearman & Sterling; Lachlan Clancy – Shearman & Sterling; Bilyana Belcheva – Shearman & Sterling; Patrick Clancy – Shearman & Sterling; Leona McManus – Shearman & Sterling; Daryl Chew – Shearman & Sterling; Hyung-Sik Bang – Shearman & Sterling; Simon Letherman – Shearman & Sterling;

Law Firms: Shearman & Sterling;

Clients: Marubeni; Sojitz Corporation; PT Pertamina;