Eric Watkins
Senior Correspondent
LOS ANGELES, Aug. 14 -- Indonesia's PT Pertamina will join Mitsubishi Gas Chemical Co. Inc. in building a $1 billion LNG plant at Senoro in Central Sulawesi. An agreement will be signed by Indonesia and Japan when Japanese Prime Minister Shinzo Abe visits Indonesia Aug. 19-21, said Pertamina Pres. Director Ari Sumarno.
Construction of the 2 million tonnes/year plant is scheduled to begin this year and to come on stream by 2010.
Mitsubishi, which will become the sole buyer of the facility's LNG, is the project's majority shareholder, with a 51% stake, while Pertamina owns 29% and Medco, 20% (OGJ Online, Jan. 19, 2007).
Source gas will come from the Senoro Block, which has 1.53 tcf of proved reserves and is jointly operated by Pertamina and Medco. Additional supplies will come from Pertamina-operated Matindok Block, which has 0.7 tcf of proved reserves.
The Senoro LNG plant is one of four energy deals to be signed between Indonesia and Japan, according to Energy and Mineral Resources Minister Purnomo Yusgiantoro. The other three agreements will take up the development of a gas pipeline and two coal-fired power plants.
Contact Eric Watkins at [email protected].