Four firms participate in Arun Regas EPC tender

By Godang Sitompul

Four companies namely JGC Corp, Wika, Rekind and IKPT are participating in EPC tender for the Arun Regas LNG receiving terminal in Arun, Aceh. The winning bidder is expected to be announced in the middle of August, said Daniel S. Purba Vice President for LNG project at state-owned oil and gas firm Pertamina.

?The EPC tender for the Arun Regas terminal is still on going, it is expected that the award (of the winning bidder) can be made in the middle of August, if there is certainty of LNG supply, and commitment from gas buyers,? Daniel told Petromindo.com on Friday.

He added that the gas buyers include state-owned electricity company PLN, fertilizer firms Pupuk Iskandar Muda and Asean Aceh Fertilizer, and paper producer PT Kertas Kraft Aceh.

He expected these companies to sign a long-term gas purchase contract of at least 10 years. He said that the gas price will be set based on the following formula of LNG price plus Regas cost plus margin.

Editing by Reiner Simanjuntak