Shearman & Sterling and Widyawan & Partners have assisted a consortium led by Indonesian state-owned utility Pertamina on reaching financial close for a $1.8 billion integrated gas-fired power station project, with the financers advised by Allen & Overy and Ginting & Reksodiputro.
The LNG-to-power project is located in Indonesia’s West Java Province. Pertamina’s partners include Japanese firms, Marubeni Corp and Sojitz Corp.
The financers include Japan Bank for International Cooperation and Asian Development Bank, as well as a group of commercial mandated lead arrangers, including Credit Agricole, Mizuho Bank, MUFG Bank, OCBC Bank and Société Générale.
This deal relates to the first-ever LNG-to-power project in the Asia Pacific region. The project includes the 1,760-megawatt Jawa-1 combined cycle power station and an accompanying 170,000-cubic-metre floating storage and regasification unit (FSRU) that will process shipments of liquefied natural gas or LNG.
The electricity produced will be sold to Persero, a state-owned power utility in Indonesia, for a period of 25 years.
The Shearman & Sterling team was led by partners Bill McCormack, Ben Shorten and Anna Chung, with support from partners Patrick Clancy, Daryl Chew and Simon Letherman.
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