Korea Gas Corp. (KOGAS) has plans to slash its exposure to the $2.8 billion Donggi-Senoro LNG (DSLNG) project in Indonesia when its long-term procurement contract expires in 2027.
DSLNG operates an LNG liquefaction facility and an export terminal in central Sulawesi, according to the Korea Economic Daily. KOGAS has a 9.8 percent stake in DSLNG.
The decision came after KOGAS entered price negotiations with DSLNG, but failed to reduce the mid-term contract price, meaning that it will likely continue to pay an additional 62.4 billion won ($50 million) per year until the contract expires in 2027.
DSLNG was the first LNG project in Indonesia to adopt a downstream development model, according to its website. The project was established as a foreign investment company in 2007 by Indonesia's national energy company PT Pertamina and PT Medco Energi Internasional, together with Mitsubishi Corp. and KOGAS.
The Korea Economic Daily reports Mitsubish
