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Mitsubishi to build new Indonesian LNG plant

LNG Industry,

Mitsubishi Corporation has decided to invest US$ 2.8 million in the Donggi-Senoro LNG (DSLNG) project in Indonesia. The construction and operation of the LNG plant is being spearheaded by PT Donggi-Senoro LNG (PT DSLNG), a company 51% owned by Mitsubishi. Indonesia has the largest natural gas reserves in Southeast Asia and is the world’s third largest LNG exporter.

In the second half of 2014, PT DSLNG aims to produce and deliver approximately 2 million tpy of LNG, along with associated condensate (approximately 47,000 bpd crude oil equivalent), and has also come to terms with JGC Corporation on the LNG plant’s engineering, procurement and construction.

PT DSLNG is a joint venture between Mitsubishi Corporation, Pertamina Energy Services Pte. Ltd. (PES)., and PT. Medco LNG Indonesia (MLI) and Korea Gas Corporation, (Kogas).

Furthermore, PT DSLNG has signed the Heads of agreement for the LNG sales and purchase agreement with Chubu Electric Power Co., Inc. and Kyushu Electric Power Co., Inc. respectively. Negotiations are currently being finalised with Kogas.

Since its inception, Mitsubishi has been co-ordinating the project’s development, and this will be the first time a Japanese enterprise has taken the lead in planning and operations following an LNG plant’s construction.

Furthermore, the project’s scale should pave the way to commercialisation and practical use of remote, small to medium-sized gas fields that have yet to be developed.

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