Medco, Pertamina, Mitsubishi to sign LNG plant deal

State owned oil and gas company PT Pertamina together with its partner, PT Medco Energi International, will sign a deal with Japanese firm Mitsubishi for the construction of an LNG plant in Central Sulawesi later this month.

Lukman Mahfoedz, president director of Medco E&P Indonesia, told reporters on Wednesday that under the deal, the Japanese firm would build the Senoro LNG plant with a capacity between 2-2.5 million tons per annum (MTPA) and natural gas supplies from Pertamina and Medco?s Senoro-Toili and Donggi blocks. Both blocks have combined proven and certified gas reserves of 2.3TCF.

?Hopefully, the deal will be signed next week,? Lukman said.

Lukman said the companies are still looking for market for the LNG to be produced at the plant. However, Medco?s CEO Hilmi Panigoro said in November last year that the whole output of the LNG plant would be exported to Japan.

According to Lukman, Mitsubishi will finance the development of the plant. (Godang)