Malaysian offshore service provider Coastal Contracts is tapping into the growing liquefied natural gas (LNG) supply chain in Indonesia with the purchase of a 49% stake in T Jaya Samudra Karunia for US$6.55mil (RM27mil), reports the Star.
Coastal Contracts has signed an MoU with PT. Jaya Samudra Karunia Internasional (JSK), PT. Jaya Samuda Karunia Gas (JSK Gas) and Yudha Kurniawan Tanos.
JSK core business is in Indonesia’s coal transporation sector. Given the huge potential in Indonesia’s liquefied natural gas (LNG) market, JSK has ventured into the LNG supply chain.
Coastal Contracts will acquire 215 JSK Gas shares from JSK and Yudha for US$6.55mil or US$30,476 per share. When completed, JSK Gas will issue 1,500 new shares at US$14.19mil or US$9,465 per share to Coastal Contracts.
Upon completion, Coastal Contracts will hold 1,715 JSK Gas shares or 49% stake.
The acquisition enables CCB to establish its presence in the LNG supply chain and develop expertise in the floating storage regasification unit (FSRU) solution.
“The proposed JV is in line with the initiative of the Coast Contracts to tap into the growing LNG supply chain and to further expand its business activities in the LNG downstream sector. With this acquisition, together with JSK, as the owner of floating LNG regasification unit (FRU) and floating storage unit (FSU) that form essential part of the infrastructure to support the 200MWh power plant, Coastal Contracts will be able to build a new portfolio of LNG related business," says a statement from the company.