Mitsubishi develops LNG Joint Venture

lngJapan’s largest investment house, Mitsubishi Corp., plan to invest in a liquefied natural gas (LNG) project valued at $2.8 billion through an Indonesian joint venture.

The investment will produce 2 million tons of LNG per year, starting in 2014. This project will bolster a decline in Indonesian LNG exports. Mitsubishi and Indonesia will share the expensive resource development costs.

Mitsubishi will have a 45 % stake in project. The joint venture will bring in another partner, Kogas, Korea Gas Corp, the largest purchaser of LNG, which will receive a 15 % stake. The name of the joint venture will be Donggi-Senoro LNG.

Donggi-Senoro project leader at Medco E&P in Indonesia, Lukman Mahfoedz, said that “The total investment includes infrastructure and land acquisition.”