Japan’s JFE Engineering is to team up with Indonesia’s Medco Energi for a proposed 1 million tonnes per annum liquefied natural gas import project on the Indonesian island of Batam.

The LNG terminal is intended to supply volumes for power generation on the island, which has many industries including offshore and marine fabrication.

JFE will start the terminal design early next year and the aim is to finalise plans for the project in 2019.