Sugico is in the early stages of developing two commercial UCG projects in Indonesia. The initial project, located in South Sumatra, will use UCG produced synthesis gas to generate electrical power.
This project is in the concept phase of development. At this time, the first phase of the project is expected to be sanctioned and reach financial closure during 2016 and achieve designed specified performance during 2017.
The formal agreements consist of an Intellectual Property License Agreement supported by a Services Agreement.
To use and exploit Linc Energy’s intellectual property within Indonesia, Sugico will pay a licence fee of $US17.5 million in two tranches.
Sugico will pay Linc Energy for any services provided in relation to the development of any UCG projects at commercial rates.
The second project is located in South Kalimantan and will use UCG produced synthesis gas to produce chemicals. This project is currently in the concept phase of development, but is expected to be sanctioned in 2017, reach financial close during 2017 and achieve designed specified performance by 2020.