Arun regasification project enters EPC stage

Following its final investment decision (FID), state oil and gas company PT Pertamina has started the implementation of engineering, procurement, and construction (EPC) to revitalize Arun liquefied natural gas (LNG) plant into an LNG receiving and regasification terminal.

For the US$80 million project, Pertamina has appointed PT Rekayasa Industri as its contractor. The EPC stage has been started since March this year and it is expected to be finalized within 19 months.

?After its FID approved in February, Rekayasa Industri has been appointed as its contractor. It has started the EPC since March and we hope it can be completed in September 2014,? Vice President for Technology at the gas directorate of Pertamina, Daniel Syahputra Purba said on the sidelines of 17th International Conference & Exhibition on Liquefied Natural Gas (LNG 17), in Houston, the US, on Tuesday.

Daniel said that after the completion of EPC, they will conduct a start-up and commissioning which is expected to take place for 3 months. ?So by November 2014, it will start its commercial operation,? he said.

According to him, it is very urgent to revitalize Arun LNG plant into a receiving terminal as the plant will stop operation in 2014 because its gas supply is declining and no new reserve has been discovered. Also its contract of gas sales will end by the time.

Arun plant, which has operated by PT Arun NGL since 1974 consists of 6 LNG trains with a capacity of 12,5 million tons per year (MTPA). The plant is also equipped with 5 units of LNG tanks with a capacity of 636,000 meter cubic, LPG extraction facility with a capacity of 1,4 MTPA, and 4 units of LPG tanks with a capacity of 302,000 meter cubic, and also other supportive facilities that can be still utilized.

The need of gas in Nanggroe Aceh Darussalam and North Sumatera is averagely at 420,20 MMSCFD until 2020. But the capacity of gas supply with the current infrastructure is only at 224 MMSCFD and it will decrease if there is no development of new facilities. To channel gas from the revitalized Arun facility to Medan, Pertamina will build a gas pipeline to Belawan. Through its subsidiary PT Pertamina Gas, the company will decide its EPC contractor this month. It is expected to be finalized by October 2014.

Editing by Benget Besalicto Tnb.