DSLNG to sign GSA with Pertamina, Medco soon

PT Donggi Senoro LNG (DSLNG) expects to be able to seal Gas sales Agreement with state oil and gas company Pertamina and IDX-listed energy firm Medco Energi within the next few weeks.

DSLNG CEO Surya Wazni said on Thursday both parties are now in intensive negotiation to finalize the deal.

DSLNG is a company formed by Mitsubishi Corp. (51 percent), Pertamina (29 percent) and Medco (20 percent) to run the proposed 2MTPA LNG plant in Central Sulawesi, which will operate as downstream industry.

The LNG plant would buy gas as feed from Pertamina-operated Donggi Block and Pertamina-Medco-operated Senoro-Toili block.

Meanwhile, Medco EP CEO Lukman Mahfoedz said that soon after GSA would be signed, DSLNG will renegotiate EPC contract price of the LNG plant with JGC, which had been appointed as the project?s developer. He did not give detail about the EPC price cut DSLNG is seeking. In April 2008, Pertamina estimated the cost to develop the project was US$1.4 billion. The past few months saw steep decline in steel prices, which may bring the cost down substantially, a Pertamina official said recently.(godang)