Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Indonesia
Location: West Papua
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Asian Development Bank (ADB)
Status: Active
Bank Risk Rating: A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2016-12-01
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: HSBC Bank USA
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Energy
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 400.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 400.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ ADB website
Updated in EWS: 2017-08-02
Disclosure Date: 2016-07-11
Tangguh Liquefied Natural Gas Expansion Project
ADB-49222-001

Project Description
The Tangguh natural gas liquefaction facility (Tangguh) has been operating in West Papua, Indonesia's least developed region, since 2009. It currently consists of two trains (Train 1 and 2) that were financed with ADB, JBIC and international commercial bank support in 2007. Each train is designed to produce 3.8 million metric tons per annum (mtpa) of liquefied natural gas (LNG) each. The LNG is currently sold to buyers in Indonesia, the PRC, Japan, Korea, and USA. The Tangguh Expansion consists of a third 3.8 mtpa LNG train (Train 3) and associated offshore and onshore production facilities and supporting infrastructure. Train 3 is expected to commence production in 2020, and has committed 40% of production to PLN (the Indonesian national electric utility) under a long term sales and purchase agreement (SPA). State-owned Perusahaan Listrik Negara (PLN, the national power utility) has committed to buy 75% of train 3’s production to generate electricity for the domestic market. The remaining 25% of the new unit’s LNG output has been committed to Kansai Electric of Japan. The financing of Tangguh Expansion will be through a New York-based commercial bank that will act as trustee borrower. The sponsors of Tangguh, through production-sharing arrangements with the Government of Indonesia (GOI) are: BP (37.2%); CNOOC (13.9%); Mitsubishi Corp. and INPEX Corp. (together 16.3%); Nippon Oil Corp. and Japan Oil Gas and Metals National Corp. (JOGMEC) (together 12.2%); Mitsui (10% in JV with Mitsubishi Corp., INPEX, Nippon Oil, JOGMEC); Sumitomo and Sojiz (together 7.3%); and Talisman Energy Inc (3.1%). A subsidiary of BP, BP Berau Limited, operates the Tangguh project on behalf of the sponsors.
Investment Description
Contact Information
ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main
Bank Documents