Arun may be turned into LNG receiving terminal

Upstream oil, gas authority BPMIGAS said part of Arun NGL in Aceh may be turned into an LNG receiving terminal in the future.

Deputy Chairman Budi Indianto said that BPMIGAS is currently studying the possibility to turn a loading terminal in Arun NGL into LNG receiving terminal to meet gas requirement of Aceh fertilizer maker PT Pupuk Iskandar Muda.

He did not give further detail.

Arun NGL is currently producing LNG at declining rate due to declining reserves of gas blocks operated by Exxon Mobil and its supply contract to East Asian buyers will expire within the next few years.

PIM, on the other hand, has experienced acute gas supply shortage, forcing it to operate at below capacity. (bernard)