Pertamina kicks off tender process for Arun LNG project

State oil and gas company PT Pertamina launches pre-qualification process for engineering, procurement and construction (EPC) for modification of Arun LNG Receiving Hub and Regasification Terminal in northern Sumatera, the company announced Wednesday.

The registration date is set for January 10-24, 2012 at 4th Floor, Annex Building, Jl Merdeka Timur No. 1 A, Central Jakarta. Indonesian registered companies or consortium led by local companies are eligible to take part in the tender.

Pertamina has finalized the front-end engineering design (FEED) for the modification of the plant in June 2011.

The company said earlier that the modification of the LNG plant will lead to an increase of capacity of the plant to 320 MMSCFD from 200 MMSCFD. The modification of the LNG plant will cost around US$73 million, with operational expenses estimated at US$4 million.

Pertamina through its subsidiary PT Pertagas will build a 350-km pipeline to transport 120 MMSCFD of gas from the terminal to North Sumatera with total investment estimated at US$301 million. Apart from that 60 MMSCFD of the gas will be sold to PLN and the remainder to other industries.

The installation of the pipeline is set to commence in January 2012 and followed by tender for EPC and construction in July 2012. Pertamina expects the pipeline could be used in 2013. The regasification operation at Arun is expected to commence in January 2013.

Editing by Roffie Kurniawan