Pertamina revitalizes Arun LNG terminal
Monday, July 24 2017 - 04:30 AM WIB
State-owned oil and gas firm PT Pertamina, through its indirect subsidiary PT Perta Arun Gas (PAG), is currently in the process of revitalizing its Arun LNG terminal and regasification facility in Aceh, much of which expected to be completed next year.
PAG President Director Teuku Khaidir said over the weekend that there are three projects being implemented at the Arun LNG facility including revitalization of the LNG terminal, construction of condensate terminal, and LPG tanks. The revitalization of the LNG terminal is targeted to be completed next year. ?It is estimated to be on-stream in 2018,? he said.
He said that two LPG tanks will be developed by PT Pertamina Marketing and Trading with combined capacity of 60,000 cubic meters per day, which will be able to supply LPG demand in Aceh and some parts of neighboring North Sumatra. ?This is also expected (to be completed) next year, so that in the near future, the LPG demand can be fulfilled from Arun,? Khaidir said.
Pertamina Marketing and Trading will also develop the condensate terminal with capacity of 1.5 million barrels. He said that the company will team up with partners from Thailand and Malaysia in the project. ?It (the project) will be implemented gradually,? he said.
Manager of Production Plan and Process Engineering at PAG, Sukarni Manan said that Arun has five LNG refineries, but two have been converted into LNG storage tanks. He said that two Japanese firms including Itochu and Japan LNG have expressed interest to lease the two LNG storage tanks. ?The tanks are currently under repair, which requires US$30 million,? he said.
The Arun LNG plant started operation in 1978, processing gas into LNG, but was stopped in 2014 as gas supply from the Arun field in Aceh depleted. During the period, the Arun LNG plant had delivered a total of 4,269 LNG cargoes to a number of export destinations including South Korea and Japan. The Arun facility was then converted into LNG terminal and regasification facility.
Editing by Reiner Simanjuntak