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ANNUAL REPORT 2011

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DISCOVERING OUR POTENTIAL

Potential - Donggi-Senoro

Donggi-Senoro LNG Project
With Its Shareholders Coming from Japan, Indonesia and South Korea, This Is the First All-Asian LNG Project.

Much is expected of LNG as an energy source with a relatively low environmental impact. At the Donggi-Senoro LNG Project, MC is serving as the operator, running and managing the entire project.

Global consumption of natural gas is increasing at an annual rate of 2%. In particular, demand is growing for use as a fuel source for generating electricity. The main reasons for natural gas being in high demand are its relatively low environmental impact compared with other fossil fuels, and its increased economic viability as a feedstock for power generation because of technological advancements.

In 2011, MC commenced the Donggi-Senoro LNG project, an LNG production and sales business in Central Sulawesi Province, Indonesia. MC is undertaking this project in partnership with PT. Pertamina, Indonesia's state-owned oil and gas company, PT. Medco Energi International Tbk, Indonesia's largest private oil and gas company, and Korea Gas Corporation, one of the world's largest buyers of LNG. PT Donggi-Senoro LNG (PT DSLNG), which is 44.9% owned by MC, is the project operator. Plans call for the production and sale of LNG (approx. 2.0 million tons/year) to begin in 2014. With its shareholders coming from Japan, Indonesia and South Korea, this is the first all-Asian LNG project, and it is notable for the absence of any energy majors.

The project is attracting the limelight as an undertaking with extremely profound significance in terms of effectively utilizing and making commercially viable small and medium-sized gas fields. Besides supplying LNG to Japan and South Korea, the project will also meet demand for natural gas from within Indonesia. MC has spearheaded this project right from the initial planning stages and will also play a central role in operating the liquefaction plant once construction is completed. The Donggi-Senoro LNG project is therefore expected to promote growth in MC's LNG business.

Natural Gas production in Asia Pacific area (2001-2010) (million tons)
Natural Gas production in Asia Pacific area (2001-2010) (million tons)
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[From the Business Frontline]

The main role of human resources during plant construction is to attract and recruit talented people with relevant technical skills and experiences who are expected to share the same values. It is a challenge due to the scarcity of people with the right capabilities and increasing demand in the industry. It is also a significant opportunity to build competencies in the first downstream business model in Indonesia related to an LNG project. Both serve as highly motivating factors for me to find the right people so that we can deliver on our commitment. I think HR can make a valuable contribution to Mitsubishi Corporation in achieving success in terms of talent management.


[right] Juni Kuntari

General Manager - Head of Human Resources, PT. Donggi Senoro LNG — Indonesia.
Juni Kuntari

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