C. Sulawesi LNG project to start ops 2013

Donggi Senoro LNG project (DSLNG), Indonesia?s fourth LNG center is seen to start operations in early 2013 following the signing of a vital gas deal on Thursday.

Lukman Mahfoedz, Director of IDX-listed energy firm PT.Medco Energi Internasional Tbk said on Thursday that the Central Sulawesi proposed plant, which would have nameplate capacity of 2 million tonnes per annum, would receive 335 MMCFD of gas from Medco-Pertamina-operated Senoro Toili block and Pertamina-operated Matindok block under the long-term GSA that was signed on Thursday.

Under the GSA, Senoro-Toili will supply 250MMCFD and Matindok 85MMCFD to Mitsubishi-operated DSLNG. Mitsubishi have 51 percent stake in DSLNG with Pertamina and Medco having 29 percent and 20 percent stake, respectively.

Mahfoedz said final investment decision on the project would be made in February 2009.

Meanwhile, Pertamina Vice President Director Iin Arifin Takhyan said that the total costs for the project would be around US$3.2 billion, which included $800 million to bring Senoro-Toili to come onstream and $600 million to develop adjacent Matindok Block. Iin estimated US$1.8 billion investment to build the LNG plant, which will be developed separately under downstream scheme.

Mahfoedz said that Mitsubishi has already in talks with Japanese buyers Kansai Electric Power and Tohoku Electric to offtake the entire output of the plant.(alex)