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Indonesia's Arun Regasification Facility To Go On Stream In June 2013
=The government approved Pertamina's Arun LNG conversion project
Arun LNG terminal in Indonesia is expected to start operations as a LNG receiving and regasification terminal in June 2013. The government approved "Arun LNG Conversion Project" proposed by Indonesia's state-owned oil and gas company Pertamina, which has operated the terminal as a LNG production and export facility.

It is expected that the terminal will received LNG supply from Indonesia's domestic LNG production plants in Bongtan and Tangguh and will send vaporized gas to Belawam region in the state of North Sumatra, which is in the vicinity of Medan.

With steady economic growth, natural gas demand for electricity and industrial use in the state of North Sumatra is estimated to reach up to 420 million cubic feet per day by 2018.

As for Arun LNG Conversion Project, Pertamina completed front-end engineering design (FEED) last June, based on which Pertamina will invest US$80 million in the project to convert Arun LNG Terminal into a LNG receiving terminal and regasification unit with send-out capacity of 200 million cubic feet per day, which is equivalent to about 1.5 million tons per year of LNG. The company plans to expand the capacity of the terminal up to 320 million cubic feet per day, or 2.3 million tpy of LNG in the future.

Pertamina will also install transportation pipelines to send vaporized gas to Belawam region. The vaporized gas is expected to be sold to Indonesia's state-run electricity utility PT PLN and industrial gas users near Belawam.

On the other hand, LNG is planned to be import through an offshore import terminal from the end of 2013, which Indonesia's state-owned gas company Perusahaan Gas Negara (PGN) is planning with a vessel equipped with floating storage regasification unit (FSRU). Accordingly, vaporized gas will be supplied to the areas surrounding Belawam from two sources, Arun project and the offshore terminal with FSRU. Incidentally, PGN signed a 20 year FSRU agreement with Noweigian Hoegh LNG Limited. The agreement is a 20 year charter party with two five year options to extend for a total period of 30 years.

In the meantime, regarding the plan to import LNG through the offshore terminal, Norway's Golar LNG is scheduled to put the vessel with FSRU into operations soon. The company will remodel LNG carrier "Khannur" into the one with FSRU and receive LNG from Bongtan through the floating terminal located near Jakarta in west Java.

On top of that, FSRU is scheduled to be placed into service in east Java as well after 2013. With commencement of operations at these LNG terminals, LNG domestically produced will be supplied to Indonesian users in full scale.
last modified : Fri 23 Mar, 2012 [10:26]
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