Around 70% of the funds would be financed by loans, with the remaining 30% funded by equity. China's largest foreign exchange bank, Bank of China, is expected to lend more than $1 billion to the project located in the restive Papua province.

Plans for investment had been agreed upon last year but the decision to move ahead with the financial influx was delayed by the introduction of Indonesia’s new oil and gas law.

The actual cost of building the LNG project is around US$2.2 billion with the total funding including the cost for developing the gas fields and the construction of the plant, the tankers, the pipelines and all other necessary infrastructure.