Gas buyers support modification of Arun LNG plant

Major gas buyers in Aceh that is PT Pupuk Iskandar Muda (PIM), PT Aceh Asean Fertilizer, PT Kertas Kraft Aceh, and the province branch of state owned electricity firm PT Perushaan Listrik Negara (PLN) have strongly supported the modification of the Arun LNG plant into an LNG receiving terminal.

PIM's president director Mashudianto said on Tuesday that the five companies had officially submitted the estimated volume of their gas purchase so that Pertamina as the operator of the proposed terminal would have sufficient data to assess its feasibility.

He said that PIM would buy about 105 million standard cubic feet per day (mmscfd), PT Aceh Asean Fertilizer (70 mmscfd), PT Kertas Kraft Aceh (8 mmscfd), dan PT PLN (17 mmscfd).

With the purchase commitment, he hoped the project to modify the Arun LNG terminal into a receiving terminal could be begun in April, this year. The terminal will receive gas from the Tangguh LNG plant in Papua or overseas LNG plants.

Arun LNG plant will have to stop its LNG production within the next three years due to the shortage of gas supply. The Arun gas field, the only gas supplier of the plant may stop production in 2014 due to the depletion of gas reserves.

The Arun LNG plant was built along before the construction of the Bontang LNG plant in East Kalimantan and the Tangguh LNG plant in Papua. (*)