Head of Agreement for C. Sulawesi LNG plant to be signed this month

A consortium of Japanese and Indonesian companies will sign the head of agreement (HOA) for the construction of a liquefied natural gas (LNG) in Senoro, Central Sulawesi this month, Kontan reported on Saturday.

 

Lukman Mahfoedz, the President Director of Medco E&P Indonesia, a subsidiary of JSX-listed energy firm Medco Energi Internasional, said that the HOA would cover an agreement to purchase gas from Matindok Block fully owned by state owned oil and gas company Pertamina, and from the Senoro-Toili block owned by Pertamina and MedcoEnergi.

 

The gas will be channel to the LNG plant owned by Japanese firm Mitsibishi Corp, Pertamina and MedcoEnergi. The three firms are still negotiating on the share composition in the LNG plant.

 

“The final agreement will be signed early next year,” Lukman was quoted by the daily as saying on Friday in Jakarta.

 

The LNG plant will have a production capacity of about 2-2.5 million tons a year. The construction is expected to begin next year while the operation is expected to start in 2010. (*)