Japan's Mitsubishi Corporation (MC) disclosed Sunday, the first liquefied natural gas (LNG) cargo from Donggi Senoro LNG (DSLNG) Project in Sulawesi, Indonesia has been shipped to Arun LNG receiving terminal operated by the Indonesian state-owned oil and gas enterprise, Pertamina. MC is a major shareholder (45 percent) of the PT Donggi-Senoro LNG (DSLNG), the operating joint venture company of this project.
DSLNG has a liquefaction natural gas plant which has 2 million tons per annum of LNG production capacity, located in Central Sulawesi State, Sulawesi island. The total developing cost of this project is approximately $2.9 billion and MC was able to reach the final investment decision (FID) in January 2011. After 4.5 years of development, the LNG plant operation started June 24 and the first LNG shipment was released today. DSLNG will deliver LNG based on long term contracts to supply 1 million tons per year to Chubu Electric Power Co Inc., 300,000 tons per year to Kyushu Electric Power Co Inc. and 700,000 tons per year to Korea Gas Corporation (KOGAS).
This project differs from conventional LNG projects in the way that international major oil companies took the initiative in the development and operation of LNG project. This project is also a pioneering project whereby a Japanese enterprise has taken the lead in the development and operation of a LNG project for the first time.
Additionally, MC has been fortunate to work with our project partner, KOGAS, one of the largest LNG buyers in the world, to develop this first joint LNG project with them. MC hopes to keep a good relationship with KOGAS and contributing to the stable supply of energy in East Asia by diversifying their sources of supply.
DSLNG has been supporting the local community from its development phase and will continue to do so after the operational phase. These activities include the creation of job opportunities and training for local communities, and the support of infrastructure including repairs of public roads, and educational support. DSLNG aims to ensure the stable operation of the plant by taking safety, environment and the local community as a priority consideration.
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