Govt mulls relocating Arun LNG trains to C. Sulawesi

The government has considered to relocate two idle trains of liquefied natural gas (LNG) owned by PT Arun Natural Gas Liquefaction Corp. (Arun NGL Corp.) from Aceh to Central Sulawesi where state oil and gas firm Pertamina has planned to build another LNG plant, Bisnis Indonesia daily reported on Monday.

The two LNG trains remained idle because natural gas supply from ExxonMobil Indonesia to Arun NGL?s facility had dropped over the past months, the newspaper quoted BP-Migas chairman Rachmat Sudibyo as saying over the weekend.

Rachmat said the LNG plant units from Aceh might be removed to Matindok field in Central Sulawesi where Pertamina had planned to build an LNG plant possibly in cooperation with other parties like Marathon Oil, El Passo Corp. and Philippine oil firm PNOC.

Meanwhile, Pertamina president director Baihaki Hakim said the two trains could not be removed to Tangguh because their technology differed from the one to be used for Tangguh LNG plant.

BP Indonesia president director Bill Schrader said relocating the two trains to Tangguh would not be efficient in terms of technology and costs. Moreover, it would be an impossible work, he said.

Arun LNG plant is jointly owned by Pertamina (55 percent), ExxonMobil Corp. (30 percent) and a consortium of Japan?s LNG buyers. (*)