Mitsubishi may be picked to develop C. Sulawesi LNG project

State oil and gas company Pertamina and JSX-listed energy firm Medco Energi Internasional Tbk. will likely pick Japanese firm Mitsubishi Corp. to develop the proposed 2 million tonnes per annum (MTPA) LNG plant in Central Sulawesi.

An industry source that declined to be named said that announcement would be made ?shortly?. The source refused to reveal more detail.

Pertamina deputy CEO Iin Arifin Takhyan said in a November interview that final bidders for the projects were: four bidders; Mitsui Corp., Mitsubishi Corp., Australia?s LNG Ltd and Osaka Gas consortium and Japan LNG.

The Central Sulawesi LNG plant project will get gas supply from Pertamina-operated Donggi block, and adjacent Pertamina-Medco-operated Senoro-Toili block. Both blocks have combined proven and certified gas reserves of 2.3TCF.

Iin said Pertamina and Medco would have 20 percent shares each the LNG project, slated to be the country?s first downstream LNG project, where Medco and Pertamina would be paid based on the price of LNG exported. The whole LNG output would be exported to Japan, said Medco CEO Hilmi Panigoro, also in November interview.

Iin Arifin Takhyan earlier said costs to develop the LNG plant was estimated at between US$600-700 million and development costs for both Donggi and Senoro-Toili block would reach $300 million. The LNG plant is expected to become onstream 2009-2010. (godang)