An Asian gas industry publication has reported that PT Pertamina has selected Mitsubishi Corporation to join it in a proposed liquefied natural gas plant in Central Sulawesi, Indonesia.

LNG Ltd today said the publication Gas Matters Today Asia reported that the 2 million tonnes per annum plant is to be supplied gas from the Matindok gas field and the nearby Senoro gas fields.

Matindok is wholly-owned by PT Pertamina, while the Senoro gas fields are jointly owned by PT Pertamina and PT Medco E&P.

LNG Ltd said the report indicated that Mitsubishi would invest up to $US800 million ($A1.02 billion) in the LNG plant.

Managing director Maurice Brand said LNG Ltd had received “no formal notification of the selection of Mitsubishi Corporation.”

“Furthermore, the company considers that such a decision, if it is formally approved, would fail to acknowledge commitments given under an exclusivity agreement signed with PT Pertamina and PT Medco E&P in May 2005 (commitments fully complied with by LNG Ltd), in relation to the provision of gas to LNG Ltd from the Senoro gas fields, and was the result of a ‘beauty parade’ process which the company considers requires appropriate review.

“The company is considering its position on both these issues and any necessary action to protect shareholders’ interests, including funds expended by the company in good faith and based on commitments given by all parties under the exclusivity agreement.”

LNG Ltd said it understands that PT Pertamina's decision still requires formal approvals, including the Pertamina board of commissioners and the minister of state enterprises, who has Government of Indonesia responsibility for PT Pertamina.