Pertamina and PT Medco Energy International will spend $1.9bn on the Donggi-Senoro liquefied natural gas (LNG) project in Sulawesi, Indonesia.

The project aims to produce two million tonnes of LNG a year from 2014.

Pertamina will spend $812m on an LNG plant, $300m on the development of the Senoro field and another $275m on the Matindok gas fields that will supply gas to the LNG plant.

Medco is to take an 11.1% stake in the project, Mitsubishi will take a 45% stake instead of the 51% as previously planned, while South Korea Gas Corporation (KOGAS) will have a 15% stake in the venture.

LNG will be delivered to Japan’s Chubu Electric Power and Kyushu Electric Power, as well as to KOGAS.