30/07/2015

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ArunfacilitystartsanewafterLNGdelivery|TheJakartaPost

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Arun facility starts anew

after LNG delivery
RarasCahyafitri,TheJakartaPost,Jakarta|Business|Sat,February212015,8:42AM

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AplantlocatedinArun,Aceh,issetforanewroleasaregasification
terminalforliquefiednaturalgas(LNG)afterarecentcargofromthe
TangguhfacilityinPapuawasdeliveredforthefirsttimeandwillbe
redirectedtogenerateelectricity.
TheLNGcargo,whichhas119,000cubicmetersinvolume,wassent
fromtheTangguhLNGfacilityandreachedArunonThursday.TheLNG
willbeprocessedbytheArunLNGreceivingandregasificationterminal,
whichrecentlycompleteddevelopment.
TheArunregasificationplantisadevelopmentofexistingfacilities
operatedbyPTArunNGL,whichisnolongerabletorunitsactivities
optimallyasthegassourceforLNGproductionhasbeendepleted.
AprojecttomodifyArunNGLsassetstothereceivingand
regasificationfacilitystartedinearly2014.TheArunfacilityisnow
operatedbyPTPertaArunGas,asubsidiaryofPTPertaminaGas,
whichisalsoasubsidiaryofoilandgasgiantPTPertamina.
Underthecurrentmechanism,regasifiedgasfromtheArunplantwillbe
deliveredthroughPertagaspipeline.
Accordingtotheinitialplan,theLNGsupplywillbefor[stateowned
electricityfirmPT]PLNandnearbyindustry.Deliverywillbeperformed
throughtheArunBelawanpipelineownedbyPertagas,PertaArunGas
presidentdirectorTeukuKhaidirsaid.
PLNhasbeenallocatedtoreceiveninecargoesofLNGfromthe
TangguhfacilityinPapuathisyear.
Thisadditionalgasforelectricitygenerationwillreinforceelectricity
supplyinthenorthernpartofSumatra.Thiswillalsosignificantly
increasePLNsefficiencybyreplacingtheoilfuelusedinBelawans
generator,PLNpresidentdirectorSofyanBasirsaid.
ThenorthernpartofSumatraiscurrentlyfacinganelectricitydeficitand
PLNisstrugglingtomaintainpowersupplythere.
TheUpstreamOilandGasRegulatorySpecialTaskForces
(SKKMigas)chief,AmienSunaryadi,expectedthefirstdeliveryofLNG
fromTangguhtoAruntohelpthegovernmentmeetitstargetofseeing
higherabsorptionofthecountrysnaturalgasbydomesticusers.
Thisisarealeffortfromtheupstreamoilandgassectortoprioritize
domesticenergyneeds.SKKMigasiscommittedtoincreasinggas
supplyallocationforthedomesticmarket,Amiensaid.
SKKMigasistargetingtoseeasmuchas61percentoftotalproduction
fromgasfieldsinthecountrytobeabsorbedbydomesticbuyers.
Indonesiaisestimatedtohavesignificantamountsofgasreserves.
However,poorinfrastructurefacilitiesconnectingareasrichingas
supplyintheeasternpartofthecountryanddemandrichareasinthe
westernparthavehindereddomesticconsumption.Instead,thegasin
LNGcargoesissentabroad,makingthecountryamajorLNGexporter
foryears.
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ArunfacilitystartsanewafterLNGdelivery|TheJakartaPost

Asoilproductioncontinuestodecline,thegovernmentiscallingforthe
utilizationofnaturalgasandisrequestingthatgasfieldcontractorsbe
committedtodomesticdeliveries.
Tangguh,whichisoperatedbyBPBerau,iscurrentlyundertaking
expansionplanstodeveloptheTrain3,whichwillincreaseLNG
production.Theoperatorhascommittedthat40percentoftheTrain3
outputwillbedeliveredtodomesticbuyers.
This[thefirstdeliverytoArun]isanimportantmilestoneforTangguhin
itscommitmenttosupplydomesticgastohelpmeettheincreasing
demandinIndonesia.TheTangguhpartnershipisproudtosupportthe
commissioningoftheArunregasificationfacilityandlooksforwardto
safelydeliveringfuturecargoestotheterminal,ChristinaVerchere,BP
AsiaPacificregionalpresident,saidinastatement.
FollowingthecommercialoperationoftheArunplantandtheArun
Belawanpipeline,Pertagasiscurrentlyplanningtoacceleratethe
developmentofa120kilometerpipelinethatwilldelivergassupplyfor
industriesintheKawasanIndustriMedanandKawasanEkonomi
KhususSeiMengkeiareasstartinginJunethisyear.

Paper Edition | Page: 13

Readalso:
Pertaminasigns$4billionLNGpurchasedealwithItalianEni
DonggiSenoroLNGplantreadyforoperation
Newgassupplymostlytogotopowerplants
BPupbeatoversellingTrain3gasdespiteprojectedglut
CNOOCopentopossibilityofnewpriceformulaforFujian

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