10 Nov 2013 16:30

Construction Project of Arun LNG Storage and Regasification Terminal Started

JAKARTA - PT Pertamina (Persero) started the construction project of Arun LNG Storage and Regasification Terminal, which will become the backbone of gas supply as the energy resource to drive the economic activities in Aceh and North Sumatera.


The construction inauguration was marked with the groundbreaking and placing for the inaugural stone by Pertamina Gas Director Hari Karyuliarto and Rekayasa Utama Industri President Director Mochammad Ali Harsono, accompanied by Pertagas President Director Hendra Jaya dan and Perta Arun Gas President Director Teuku Khaidir at LNG Arun Plantsite, Lhokseumawe, North Aceh.


Hari Karyuliarto said that forty years ago Pertamina and its partners signed LNG purchase agreement that became the foundation for the establishment of Arun refinery. When the era as LNG producer entered the sunset period because the gas resource stock depleted, Arun LNG has to make changes to welcome new era as the LNG Storage and Regasification Terminal.


The LNG refinery conversion to become the first regasification in the world, he said, had gone through few important phases. After it was decided by the government in 2012, Pertamina set the Final Investment Decision in February 2013 and appointed Rekayasa Industri as the Engineering, Procurement and Construction executor in March 2013.


“The groundbreaking today as well as the project development so far have shown how strong Pertamina's and its partners' commitment to complete this huge project on time. Beside the prestige and challenges as the first of such project in the world, the project is also long-awaited for its role in ensuring the availability of gas supply for the power plant and industrial needs in Aceh and North Sumatera. Running concurrently with the project is the Arun-Belawan 'open access' gas transmission pipe project, “ said Hari on Saturday (9/11).


The Arun LNG Storage and Regasification Terminal Project is designed to hold the capacity of 400 Mmscfd, equal to 3 million tons per year. Currently the project has the commitment to supply allocated 120 Mmscfd to PLN. “We keep putting effort to find additional gas supply so that the installed capacity can be optimized,” he said.


Combined with the Arun-Belawan 'open access' gas transmission pipe project, as of October 2014, Pertamina will be investing US$ 570 million, in which US$ 80 million is to be allocated for LNG regasification project. By the end of December 2013, the Arun-Belawan 'open access' gas transmission pipe project will reach 50% completion of its total length of 340 kilometer. As such, Pertamina is optimistic that both projects will meet their completion schedule.


The integration of the Arun LNG Storage & Regasification Terminal project and Arun-Belawan 'open access' gas transmission pipe project can be achieved because of the synergy between seven state-owned companies, namely Pertamina, PLN, Pupuk Iskandar Muda, Rekayasa Industri, PTPN 1, PTPN 2, PTPN 3 and a BUMD. This has clearly shown that positive synergy between state-owned companies and local-government-owned companies will give rise to positive results for all stakeholders and in the end will bring utmost benefits for the public who will enjoy positive impacts of the projects.

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