Indonesia to resume LNG exports from Arun: Report

Thursday, August 16 2001 - 04:11 PM WIB

Indonesia will export liquefied natural gas (LNG) from troubled Aceh province to Japan on Saturday, the first shipment since its Arun gas plant was closed in March due to separatist threats, a company official was quoted by AFP as saying Thursday.

"The ship will leave for Japan on August 18," PT Arun vice president Hasan Saad told reporters.

He said there would be 116 LNG shipments to Japan over the rest of the year.

US-based oil giant ExxonMobil, which feeds natural gas to the huge North Aceh-based Arun plant, shut down operations at three of its five Aceh gas fields in March, citing hijackings, arson and kidnapping threats to its personnel by rebels of the Free Aceh Movement (GAM).

GAM has waged a guerrilla war for an independent Islamic state for 25 years.

Indonesia has suffered a loss of 350 million dollars from lost LNG exports to South Korea and Japan because of the closure.

Some 90 percent of ExxonMobil's gas output is supplied to PT Arun for exports to Japan and South Korea. The other 10 percent goes to two fertiliser firms and a pulp firm operating in the area.

ExxonMobil resumed limited operations in the middle of last month.(Godang)

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