Japan, South Korea to Finance Donggi-Senoro LNG Project

Japanese and South Korean banks are likely to lend $1.5 billion to Mitsubishi Corp's Donggi-Senoro LNG project in Indonesia, according to news agency Bloomberg.

Sumitomo Mitsui Financial Group Inc. is leading the group of lenders, sources have told Bloomberg. State-owned Japan Bank for International Cooperation will commit $764 million. Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. and Sumitomo Mitsui will provide a total of $382 million, while Export-Import Bank of Korea, Korea Exchange Bank and Nonghyup Bank together are committing the same amount.

Mitsubishi owns 45 percent, the largest stake, in the Donggi-Senoro LNG project on the central island of Sulawesi in Indonesia. The facilities in Sulawesi are scheduled to begin operations in the middle of next year, and will have annual capacity of 2 million tons, Bloomberg said.