SKK Migas secures gas supply for Arun plant revitalization project

By Godang Sitompul

Upstream authority SKK Migas, has assured that the necessary liquefied natural gas (LNG) supply for the planned Arun LNG plant revitalization project in Aceh will be available, urging state-owned oil and gas firm PT Pertamina to quickly start the project in the hope that it could be on stream in 2014-2015.

Under the plan, the Arun LNG plant will be converted into an LNG receiving terminal and regasification facility. A 350 km gas pipeline linking Arun in Aceh to Belawan in North Sumatra will also be developed to supply gas to industries and power plants in the latter province.

SKK Migas Chairman Rudi Rubiandini told Petromindo.com Tuesday that the gas supply for the Arun project can either come from Tangguh, IDD Chevron, ENI Jangkrik, Inpex Masela, and Donggi Senoro LNG.

?Start the revitalization (project) quickly, and the gas (requirement) has been prepared. It?s being arranged (that the gas supply can) come from Tangguh, IDD, Jangkrik, Masela, or Donggi,? Rudi said.

Meanwhile, SKK Migas Commercial Deputy, Wawan Prawiraatmadja said that the gas requirement has been secured, although the volume has yet to be determined. But the largest allocation will come from Tangguh LNG plant, he said.

Earlier, on Monday, Pertamina said that it has approved the final investment decision for the Arun LNG plant revitalization project including for the construction of the Arun-Belawan pipeline. The company is hopeful that it could be on stream in the fourth quarter of 2014.

Editing by Reiner Simanjuntak