Mitsubishi eyeing stake at C. Sulawesi LNG plant

Japanese firm Mitsubishi Corp. is in advanced talks with state oil and gas company Pertamina and JSX-listed oil firm Medco Energi Internasional Tbk to finance, partly own Central Sulawesi LNG project and to offtake output from the proposed plant, an executive at Pertamina EP, an upstream arm of Pertamina said on Wednesday.

Pertamina EP Director Tri Siwindono said that under the present negotiation, Pertamina and Medco would own certain percentage of shares at the proposed plant and would sell gas from Pertamina-operated Donggi block and Pertamina-Medco-Operated Senoro-Toili block to the LNG plant.

?Mitsubishi is seeking to have majority stake at the LNG and to buy a significant amount of LNG produced,? he said. He said that aside from Mitsubishi, Australian company LNG Limited is also looking for majority shares in the plant.

?We hope to settle negotiation soon,? he said. He said that the LNG plant would be operated separately from upstream sector, making the plant to become the first downstream LNG plant in Indonesia.

Siwindono said that the plant would have capacity between 2-2.5 MTPA. Earlier, Kun Kurnaely, Pertamina EP CEO said that the plant would be expected to commence operation 2009-10.

Pertamina has 100 percent interest in Donggi Block and 50 percent in nearby Senoro-Toili block. JSX-listed oil and gas company Medco Energi Internasional has the remaining 50 percent.(godang)