Mitsubishi takes charge in Indonesian LNG project

Author: Danielle Myles | Published: 27 Feb 2011

Mitsubishi’s exchange of stakes in the Donggi-Senoro LNG project, one of the first LNG projects to be structured as separate upstream and downstream projects under Indonesia’s new oil and gas laws, sets a precedent for natural resource transactions and financings in the country.

Donggi-Senoro LNG, the owner and operator of the downstream LNG plant, was owned by Mitsubishi, Indonesia’s state-owned oil and gas company Pertamina, and Indonesia’s largest private-sector energy company Medco Energi.

In January Mitsubishi finalised its investment in the downstream project by transferring its interests along with newly purchased shares from Medco Energi, to a special purpose company (SPC) owned by itself and new participant Korea Gas Corporation (Kogas), the world’s largest LNG buyer. Mitsubishi continues to hold a majority stake in the project.

Then in February 2011, Medco Energi sold a 20% participating interest in the Senoro-Toili block...