Mitsubishi to proceed with Donggi Senoro LNG project in Indonesia

摘要

Japan’s Mitsubishi Corporation has given a cautious welcome to the Indonesian Government’s decision to sanction the Donggi Senoro LNG project in Central Sulawesi but has not given a specific timeframe for the project’s development.Last week the government decided the project could export up to 75% of its output to Japanese buyers with the rest allocated to Indonesia’s domestic market (see Gas Matters Today, June 18).“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 told the Jakarta Post on Friday.Mitsubishi (51%) is the lead partner in the venture which also includes Indonesian state oil and gas company Pertamina (29%) and Indonesian energy company PT Medco International (20%).Medco project director Lukman Mahfoedz said the consortium would take a final investment decision (FID) as soon as possible. “We began discussions about the project commercialisation with [upstream oil and gas regulator] BPMigas with a target to complete the FID process in six to eight weeks from now,” Lukman said. First LNG would then follow in 2014.The project looked on course for FID last year but it was halted in its tracks by calls from the government to allocate the gas from the Senoro and Matindok fields to the Indonesian domestic market to help tackle local energy shortages. But the government has relented and will allow the bulk of the gas to be exported in order to make the project viable.Chubu Electric (1 mtpa), KOGAS (0.7 mtpa) and Kyushu Electric (0.3 mtpa) signed up to buy the volumes from the 2 mtpa project. – JO’C