Mitsubishi, Pertamina, Medco sign deal on C. Sulawesi LNG project
Monday, August 20 2007 - 02:06 AM WIB
Japanese firm Mitsubishi Corp. has on Monday signed business cooperation agreement with state oil and gas company PT.Pertamina and JSX-listed energy firm Medco Energi to build an LNG plant in Central Sulawesi.
Pertamina EP CEO Tri Siwindono told Petromindo.Com on Monday that under the agreement, Mitsubishi will own 51 percent of stake in the 2-2.5 MTPA Senoro LNG plant with Pertamina and Medco will own 29 percent and 20 percent, respectively.
Gas supplies will be sourced from Pertamina’s 100 percent-owned Donggi block and Senoro-Toili block, which is equally owned by Pertamina and MedcoEnergi. Both blocks have combined certified reserves of 3.7 trillion cubic feet.
Pertamina CFO Frederick Siahaan said on Friday that the consortium will seek US$800 million loan to finance the project, which is projected to cost $1.2 billion.
The plant will be operated under a downstream system, under which the plant will buy gas from producers on a certain pricing formula. HoA on gas supply will be signed this month with final investment decision is expected to be made at the end of the year.
The plant is expected to be completed in 2011.(godang)