Mitsubishi welcomes govt?s decision on Donggi-Senoro LNG project
Monday, June 21 2010 - 03:36 AM WIB
?We will be working together with partners toward a final investment decision and we aim to contribute to Indonesia through this project,? Mitsubishi spokesman Shunsuke Nanami said in an email sent Friday.
Mitsubishi?s statement was in response to a move by the Indonesian government via the Energy and Mineral Resources Ministry which finally issued a decision last week on the future of the Donggi-Senoro LNG project. In the Energy and Mineral Resource Minister?s decree No, 4186/13/MEM M/2010, which was signed on 17 June 2010, the developers of the Donggi-Senoro gas field are required to sell between 25 and 30 percent of the LNG production to the domestic market, which means that the remaining of gas can go to the export market.
State-owned oil and gas firm Pertamina and Indonesia-listed energy firm PT Medco Energi Internasional plan to build a LNG plant in Central Sulawesi in cooperation with Japanese company Mitsubishi Corp. Gas for the proposed 2MTPA LNG plant will be supplied from Matindok-Donggi Block, which is operated by state-owned oil and gas firm Pertamina, and Senoro-Toili Block, which is jointly operated by Pertamina and Medco.
Pertamina, Medco and Mitsubishi have set up PT Donggi Senoro LNG, a joint venture company that will develop and operate the LNG plant. Pertamina has a 29 percent stake in the joint venture, while Medco has 20 percent, and Mitsubishi, as the majority shareholder, holds the balance.
In early June statement, Medco said the first shipment of LNG was expected to be done as early as 2014. ?After the government approves the gas sales agreement, we will work hard to finish the formulation of the final investment decision [FID] within six weeks to meet the target to deliver the first shipment in early 2014,? Medco project director Lukman Mahfoedz said on June 5, 2010 .(*)