Japan still expects to receive liquefied natural gas (LNG) supplies from the disputed Donggi Senoro project, a high ranking official told reporters Monday.
"The project is very much important for both sides and yes (we still hope the gas to be supplied to Japan)," Takayuki Ueda, Japan's director general for natural resources and energy said on the side line of the Tenth Indonesia-Japan Round Table in Jakarta.
The Donggi Senoro LNG plant project was intended to process natural gas from the Senoro and Matindok fields in Central Sulawesi. State oil and gas company PT Pertamina, domestic oil and gas contractor PT Medco Energi Internasional, and Japan's Mistsubishi Corporation have formed a joint venture to manage the project. Pertamina holds a 29 percent participating stake in the venture, while PT Medco Energi Internasional holds 20 percent and Japan's Mitsubishi Corporation holds a controlling 51 percent share.
But, the project has been stalled as, by the end of the last cabinet's tenure, the government decided the natural gas from the two blocks must go to the domestic market. Now Medco and Pertamina are in talks with several domestic buyers.
The government's decision has made Japan's Kansai Electric Power Co. drop its plan to buy the LNG from the project.
But, Ueda was optimistic that the project could easily find another buyer. "Since the project is very fruitful, I hope many companies will like to join in this project," he said.
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