PAG signs lease for Arun LNG plant assets

The State Asset Management Institution (LMAN) signed on Monday a contract with PT Perta Arun Gas (PAG) under which the former would lease the assets of the now defunct Arun LNG plant in Lhokseumawe, Aceh Province, to the latter company for a period of 15 years.

PAG is an indirect subsidiary of state-owned oil and gas firm PT Pertamina.

LMAN Director Rahayu Purpasari told reporters that the signing of the contract forms part of efforts by the government to revitalize the Arun LNG plant business after it stopped production in 2014. The assets were then transferred by Pertamina to the government.

The Arun LNG plant assets leased by PAG comprise of LNG tanks, pipeline network, power turbines, and office building. PGA plans to convert the former LNG plant into LNG regasification and terminal.

LMAN is a unit of the Ministry of Finance which manages various assets owned by the state. In the upstream sector, aside from the former Arun LNG plant asset, LMAN also manages the Bontang LNG plant in East Kalimantan.

Editing by Reiner Simanjuntak