Pertamina, partners in talks to sell LNG to Kansai, Tohoku

State oil, gas company Pertamina said on Monday it and partners in Senoro LNG project in Central Sulawesi are in talks to sell LNG on long term contract to Kansai Electric Power and Tohoku Electric Power.

Vice CEO Iin Arifin Takhyan told reporters that Senoro LNG might supply 2 million tonnes per annum of LNG to the two Japanese utility firms, or around 80 percent the maximum capacity of the proposed LNG project.

Iin said that negotiation is still ongoing and no conclusion had been reached.

Pertamina has 29 percent stake in Senoro LNG project, which will be built under downstream scheme. Under the downstream scheme Senoro LNG will by gas from Pertamina and Medco Energi-operated Senoro-Toil block and Pertamina-operated Donggi block. Japan?s Mitsubishi Corp. and Medco Energi will hold 51 percent and 20 percent stake at Senoro LNG project, respectively.

The LNG plant is slated to become onstream in 2011.

Iiin Gas Sales Agreement for the project is currently underway.

Pertamina CFO Frederick Siahaan said on August 17, 2007 that the consortium will seek US$800 million loan to finance the project, which is projected to cost $1.2 billion. (godang)