Medco's Donggi-Senoro LNG Project on Track

Medco Energi’s Donggi-Senoro liquefied natural gas project in Central Sulawesi is within budget and on track, president director Lukman Mahfoedz said. 

Mahfoedz said that the project, with an annual production capacity of 2.1 million tons, is expected to be by late next year, Jakarta Globe reported. 

Medco owns 11 percent in the project. LNG Development, a consortium between Japan’s Mitsubishi and South Korea’s Kogas, has a 59.9 interest, while the remaining 29 percent is owned by a unit of state energy company Pertamina. 

The project is associated with the exploitation of gas blocks with an estimated 45.3 billion cubic meters of natural gas reserves, with potential for an additional 17 bcm, the Jakarta Globe report said. The contracts on these blocks will expire in 2027. 

The downstream component of the project has already reached 70 percent completion. 

“The upstream project is also progressing. We are targeting that it will reach 60 percent completion by year’s end, and to go on stream in the fourth quarter of 2014,” he added.