Arco to involve locals in studying environmental impact of Tangguh LNG
Tuesday, May 30 2000 - 04:00 AM WIB
Atlantic Richfield Co (Arco), one of state owned oil and gas company Pertamina's production sharing contractors will involve local communities in studying the impact its Tangguh gas project in Irian Jaya on the environment, Neraca reported on Tuesday.
Arco's vice president and public and government affairs, Nico Kanter, said in Jakarta on Monday that the involvement of the locals was in line with the PP8/2000 regulations which required oil and gas contractors to involve the local communities in designing and construction of oil and gas projects.
He said the company would officially start the construction of its liquefied natural gas (LNG) plant before the end of this year and the LNG production is expected to begin by 2005.
The project will be located in West Papua, formerly known as Irian Jaya, and will consist of both downstream and upstream components.
The upstream project will include subsea pipeline transport to onshore liquefaction facilities, a marine terminal for tanker export of LNG, and support facilities. Development of the project is scheduled to start in 2004.
The downstream projects will include construction of an LNG plant, storage tanks, and support facilities. Conceptual engineering of the downstream project was completed in 1996, and initial construction is expected to start in mid or late 2001.
The refinery will produce between 6 million and 7 million tons of LNG a year from two processing plants in the early stage of operation. More processing plants will be built later according to demand.
The gas feed will be supplied by the Wiriagar field, which has 14.4 trillion cubic feet of proven reserves. (*)