Allen & Overy, an international legal practice, has announced that it advised on the financing for the US$ 2.8 billion Donggi-Senoro LNG (DSLNG) project, which was signed today.
The Donggi-Senoro LNG project is the fourth LNG project in Indonesia. The plant, which is scheduled to start production in mid-2015, will have a production capacity of 2 million tpa of LNG.
The Donggi-Senoro LNG project is the first LNG project in Indonesia to adopt a downstream development model, enabling separate development of upstream and downstream businesses. It is only the world’s second non-integrated merchant LNG plant.
Allen & Overy advised the project company, PT Donggi Senoro LNG, a subsidiary of the sponsors, Mitsubishi Corp., PT Pertamina (Persero), Korea Gas Corp. (KOGAS) and PT Medco Energi Internasional TBK.
Allen & Overy Tokyo-based partner, Scott Neilson, said: "The Donggi-Senoro LNG project is the first true project financing in the LNG sector in Indonesia and is a tribute to a great group of sponsors. The innovative legal separation between the upstream and downstream LNG plant, and the financing of the LNG plant project itself rather than through a trustee borrowing scheme as traditionally seen in the LNG sector in Indonesia, is an achievement for all involved. We are proud to have been involved in helping the project reach this stage through a combination of our market leading global LNG practice with the leading projects and financing practice in Indonesia of Ginting & Reksodiputro."
Adapted from press release by Callum O'Reilly