Japanese firm eyeing LNG JV with Pertamina

A Japanese firm called Toru Oil Japan Corp. is interested to team up with state oil and gas company PT. Pertamina to build 2MTPA LNG plant in Pertamina?s Matindok gas block in Central Sulawesi, a Pertamina official was quoted by Antara as saying.

Pertamina vice president Iin Arifin Takhyan said that Toru Oil?s intention was expressed during a meeting between the company?s CEO Watabe Toru with VP Jusuf Kalla in Tokyo Thursday.

During his visit to Japan Kalla invited Japanese companies to participate in LNG industry development in Indonesia. Japanese LNG buyers are currently scrambling to get LNG contracts from Bontang LNG plant in East Kalimantan extended after 2010 expiration.

Matindok block is by Pertamina. Matindok is located near Senoro-Toili block which is jointly operated by Medco Energi and Pertamina. An Australian company LNG Corp., togehther with a local company is currently planning to build some 2MTPA LNG plant in Senoro-Toili with project completion targeted at 2008-2009. Pertamina is in negotiation to include gas from Matindok block to be included as gas supplier to the LNG project. Pertamina also reportedly wanted to have significant stake in the LNG project, which is set as downstream project. (*)