Management and operation of Indonesian liquefied natural gas (LNG) Projects
Indonesia is one of the world's largest exporters of liquefied natural gas (LNG) and the Indonesia Project Unit is currently involved in two major LNG projects there: the Tangguh LNG Project, which is a large-scale investment project, and the Arun II LNG Project, through which we import LNG from 1984.
Following the final investment decision in March 2005, Tangguh LNG Project has completed its plant construction, and commenced LNG production in June, 2009 as Indonesia's third base. Located in the Bintuni area in western Papua, production capacity of Tangguh Project is 7.6 million tons of LNG per year. It will play an important role in securing stable supplies of LNG to Japan, China, South Korea and the United States, as well as other countries in the Asia-Pacific region. In collaboration with INPEX Corporation, Mitsubishi Corporation (MC) acquired a 16.3 percent of upstream rights in the project in July 2001 and increased its rights by 1.4% in October 2007. MC is playing a leading role in the implementation of the project together with BP, the operator of the Tangguh project.
The Arun II LNG Project started supplying LNG in 1984. In 1981, Tohoku Electric Power Co., Inc., and Tokyo Electric Power Co., Inc., signed a sales and purchasing contract with PERTAMINA to buy LNG produced from the Arun gas field in Sumatra, Indonesia. The LNG produced at the Arun LNG plant is supplied on an FOB basis, and approximately are delivered to the Niigata terminal for delivery to Tohoku Electric Power and to the Futtsu and Higashi-Ohgishima terminals for Tokyo Electric Power. MC is in charge of LNG import operations for this project.