LNG Limited complains to competition watchdog over Sulawesi LNG plant project

Australian firm LNG Limited through its Indonesian unit PT.LNG Energi Utama (LEU) has reported oil, gas firms PT.Pertamina and PT.Medco EP to competition watchdog KPPU over a dispute in Central Sulawesi LNG project, Investor Daily reported.

The report said that LEU complained that Pertamina and Medco did not make good their promise to appoint LEU as operator of Donggi LNG project and instead appointed Japanese firm Mitsubishi Corp to operate the project.

According to the report, LEU with Pertamina and Medco had signed exclusivity agreement in 2005, which stated that LEU would build an LNG plant in Luwuk with gas supplied from Pertamina and Medco?s fields.

Pertamina and Medco later appointed Mitsubishi as operator of the LNG plant after holding a beauty contest.(*)