Mitsubishi Gets Green Light from Indonesia for LNG Project

Reuters

Two boys look at a Mitsubishi i MiEV Sport during the 17th Indonesian International Motor Show 2009 in Jakarta August 1, 2009. Indonesia car sales are expected to reach 450,000 units in 2009, the head of the Indonesian Automotive Association (GAIKINDO) said on Thursday, lifting the industry forecast because of a more stable economy.

TOKYO, KOMPAS.com -Indonesia has approved a Mitsubishi Corp. project to build a liquefied natural gas plant, with terms allowing the firm to make 70-75% of the LNG production for export, the Nikkei reported in its Friday evening edition.

Mitsubishi has partnered with state-owned Pertamina and private-sector PT Medco Energi International to build the Donggi-Senoro LNG plant with an output capacity of about 2 million tons a year on Sulawesi island. The trading house had eyed exporting to Japanese utilities and a South Korean gas firm.

The original project called for LNG production for export. But the government began considering setting an export ratio in response to mounting calls for domestic use due to energy shortages in the country. Mitsubishi will work out the details, such as the amount to be invested and the date production is to start, along with its partners.