Perta Arun Gas, Rekind sign novation agreement

By Romel S. Gurky

PT Perta Arun Gas and PT Rekayasa Industri (Rekind) have signed a novation agreement to replace an original EPC contract for the revitalization of the Arun LNG plant into an LNG regasification and receiving terminal.

State-owned oil and gas company PT Pertamina said that the agreement was signed two weeks ago by senior officials of Perta Arun Gas and Rekind.

Pertamina signed a contract in March of this year appointing Rekind as the EPC contractor of the Arun LNG plant revitalization project in Aceh. But Pertamina later set up a new subsidiary called Perta Arun Gas to assume its place in the contract with Rekind.

Perta Arun Gas is owned by Pertamina subsidiaries PT Pertamina Gas (90 percent) and PT Pertagas Niaga (10 percent).

As previously reported, the EPC work was expected to be completed in September 2014, so that commercial operation of the LNG regasification and receiving terminal facility can start in November. The facility will help meet growing demand for gas from industries in Aceh as well as the neighboring Medan area in North Sumatra.

Editing by Reiner Simanjuntak