Liquefied natural gas (LNG)

The Donggi-Senoro (DSLNG) LNG Project is the first LNG project in which MC acts as the largest stakeholder. Indonesia is one of the largest LNG exporters in the world and this project will be Indonesia's fourth LNG project after the Tangguh LNG project where our Indonesia Project Unit is involved in. Targeting the start of production and delivery of approximately two million tons of LNG per year along with associated condensate from the second half of 2014, the plant construction work is under way outside Luwuk city, Central Sulawesi province.

PT. DSLNG, the project company, has concluded the heads of agreement for the "LNG sales and purchase agreement (LNG SPA)" with Chubu Electric Power Co., Inc. and Kyushu Electric Power Co., Inc. respectively. Furthermore, Korea Gas Corporation (Kogas), the world's largest LNG buyer, have agreed not only LNG SPA with PT. DSLNG but also their participation in the project as a co-operator through the investment via "special purpose company (SPC)" established as a joint-venture between MC and Kogas.

As the result, this project is attracting broad attention from the energy industry as the first joint LNG project between Japan, Korea and Indonesia (the state-owned oil and gas company, PT. Pertamina (Persero) and Indonesia's largest private oil and gas company, PT. Medco International Tbk).

Unlike other LNG projects led by international oil and gas majors and in which MC's involvement was only minority shareholder, MC has taken major role as coordinator of the project development from the initial stage. This project will be the first challenge for Japanese company to take a lead in LNG project. Furthermore, MC has also agreed on a partial acquisition of the Senoro-Toili natural gas field which is the major source of feedstock natural gas for this project, and aims to develop businesses throughout the LNG value chain from upstream to downstream.

MC hopes to leverage stable supply of energy to Japan and East Asia as well as even further contribution to Indonesia's emerging economy through this project, and also to enhance its expertise and functions in the LNG business.