LNG Limited continues to monitor development of Padang LNG project

The following is an excerpt from Australian firm LNG Limited quarterly report released on Thursday

 

As previously advised to shareholders the Company is maintaining an active presence in Jakarta in relation to the Padang LNG Project and continuing to monitor developments following the Company communicating its concerns to PT Pertamina, PT Medco E&P and the Government of Indonesia in relation to the downstream LNG project developer selection process.

 

Various reports, primarily in industry and regional newspapers, suggest that PT Pertamina and PT Medco E&P have selected Mitsubishi Corporation as their preferred downstream developer of a proposed ~2 mtpa LNG plant in Central Sulawesi, Indonesia.

 

However, as at the date of this report, we understand that there has been no formal announcement in relation to the selected downstream developer, nor the LNG project capital cost, gas price payable, development schedule and targeted date for first LNG supply.

 

During this “holding period”, the Company continues to review other gas access opportunities in Indonesia.

 

The substantial development and engineering work undertaken for the Padang LNG Project can be readily applied to assist fast track commercialisation of other proven gas reserves, both in Indonesia and elsewhere in the world. (end of excerpt)