Arun NGL to cease operation in October
Tuesday, March 25 2014 - 01:00 AM WIB
Aceh LNG plant Arun NGL will cease LNG liquefaction operations in October of this year, when the last cargo will be shipped to South Korea.
?LNG contract to Kogas will end in October and Arun will cease LNG liquefaction operations,? Arief Riyanto, Gas Commercialization Division Head at upstream oil and gas authority SKKMigas.
The plant started commercial operation in 1978. At its peak, annual LNG production from Arun reached 12.5 MTPA.
Arun NGL processes gas produced by US giant ExxonMobil from North Sumatra Offshore (NSO) PSC and Block B PSC, both of which will expire in 2018.
Arief said that ExxonMobil will supply tail gas from the two blocks to Aceh fertilizer maker PT Pupuk Iskandar Muda (PIM) with volume of 50 MMCFD. The supply, according to Arief, will last until the end of 2015.
State oil and gas company PT Pertamina is currently converting some parts of the LNG plant into LNG receiving terminal and regasification facilities with completion expected this year. The Arun LNG Storage & Regasification Terminal project is designed to have a total capacity of 400 million standard cubic feet per day (mmscfd) or equal to 3 million tons a year.
Editing by Alexander Ginting