JGC Corporation and its subsidiary PT. JGC Indonesia have been selected by Mitsubishi Corporation and joint investors a lump-sum turnkey contract to provide engineering, procurement, construction and commissioning services for the Donggi-Senoro LNG Project in Indonesia.

Yokohama, Japan – The contract value is approximately US $1.7 billion.

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The project calls for the construction of a single train LNG processing plant and associated support facilities. The single train will have a capacity of approximately 2 million tons of LNG per year. The target for start-up is late 2014. The plant will be located at Luwuk, Central Sulawesi, in Indonesia and feed gas to the plant will be supplied by the gas fields of Senoro-Toili and Matindok in the region.

The client for this project consists of Sulawesi LNG Development (59.9%) which is a special-purpose company for the project jointly established by Mitsubishi Corporation and Korea Gas Corporation, Indonesian state oil company PT. PERTAMINA (29.0%), and a major Indonesian energy conglomerate PT. Medco (11.1%). Upon completion, the plant will become the 4th LNG production facility in the country.

Through to the present, Indonesia has been the largest LNG supplier to Japan. However, production is declining due to the maturing of existing gas fields. Under such circumstances, the Donggi-Senoro LNG plant will have an important role in boosting LNG production.

JGC, which is currently executing two LNG projects, one in Australia and the other in Papua New Guinea, has an extensive track record of constructing LNG plants all over the world, totaling 30% of the world’s production capacity. JGC, as a world-leading contractor, is committed to contributing to the sustainable energy supply of LNG to the global market.