Pertamina may up stake at C. Sulawesi LNG project

State oil and gas company PT.Pertamina may increase its stake in the proposed Donggi-Senoro LNG (DSLNG) project, Central Sulawesi, from to 31 percent from 29 percent currently, CEO Karen Agustiwan said on Monday.

Karen said Pertamina is in talks with IDX-listed energy firm PT.Medco Energi Internasional tbk, who currently owns 20 percent stake in the project. ?Medco might be willing to decrease stake at DSLNG,? she said, without giving specific detail.

Another 51 percent stake in the project, which is slated to be Indonesia?s first LNG plant under downstream system, is held by Japan?s Mitsubishi Corp. Karen said that Mitsubishi will retain majority shares in the project as Japan Bank for International Cooperation (JBIC) would only willing to lend money for the project if the Japanese firm controls majority stake.

DSLNG, which is slated to produce and sell 2MTPA of LNG to Japanese firms Chubu Electric and Kansai Electric Power, will source gas from Medco-Pertamina-operated Senoro-Toili Block and Pertamina-operated Donggi block. The government, however, has yet given its approval on gas selling price to DSLNG.(godang)