DSLNG in negotiation with Japan?s JGC to build C. Sulawesi LNG plant

PT Donggi Senoro LNG (DSLNG) said that the company is still in negotiation with JGC Corporation, a Japanese engineering, procurement and construction (EPC) contractor, on plans to build an LNG plant in Banggai regency, Central Sulawesi.

?Negotiation process still continues. We really want to get the best price of the contract,? DSLNG?s spokesman Basuki Trikora Putra told Investor Daily in Jakarta Friday.

Trikora said that the company had yet to sign any deal with an EPC contractor.

He emphasized the urgency of building the LNG plant now as the company will have to deliver first LNG to a buyer in 2012.

Around 42 months is needed to build the LNG plant, according to him.

Trikora refused to unveil the value of the EPC contract that DSLNG offers to JGC Corporation.

Meanwhile, a source said that DSLNG hoped that JGC Corporation could build a plant with a capacity of 1 million tons per year in Banggai with an investment of below US$900 million.

DSLNG is 51 percent owned by Japanese firm Mitsubishi Corp. Pertamina owns 29 percent stake in the LNG plant and PT Medco Energi Internasional 20 percent.

The partnership plans to build a 2-MTPA LNG plant. Gas for the proposed plant will be supplied from Matindok Block, which is operated by Pertamina, and Senoro-Toili Block, which is jointly operated by Pertamina and Medco. The LNG plant would be built by Mitsubishi and Pertamina and Medco will sell gas to the LNG plant at well head.

DSLNG will sell its LNG production to Japanese firms Chubu Electric and Kansai Electric Power.(*)