NEXI covers Donggi Senoro LNG project insurance

Japan?s Nippon Export and Investment Insurance (NEXI) announced Thursday that it has decided to provide Export Credit Insurance regarding an engineering, procurement and construction (EPC) contract won by JGC Corporation of Japan and its subsidiary PT. JGC Indonesia for the Donggi-Senoro LNG Project in Sulawesi, which mainly covers post-shipment political risk.

The Donggi-Senoro LNG Project, led by Mitsubishi Corporation, is a joint project with Korea Gas Corporation, state oil company PT. PERTAMINA, and energy conglomerate PT. Medco Energi.

The Donggi-Senoro partners made a final investment decision in January on the $2.8 billion project, which is scheduled to come online in second-half 2014, producing 2 million tonnes/year of LNG.

Preliminary agreements to buy the total output of Donggi-Senoro gas have been signed by Chubu Electric Power Co. for 1 million tonnes, Korea Gas Corp. (Kogas) for 700,000 tonnes, and Kyushu Electric Power Co. for 300,000 tonnes

Though Indonesia is vital LNG supplier for Japan, its production is declining due to drop in gas output over the past several years. The project is expected to help maintain and increase LNG production levels in Indonesia. (alex)