Arun LNG Refinery to Convert into Regasification Facility

TEMPO.CO, Jakarta - Declining outputs of liquefied natural gases (LNG) at Arun refinery has pushed its management to convert the LNG refinery into a regasification facility. "What was built to convert natural gases into LNG, will now be used to reconvert those LNG into its natural form," said the President Director of Pertamina Gas, Hendra Jaya, in Lhokseumawe on Sunday evening.

After 40 years of producing LNG and preparing the gases for export, the refinery - owned by Arun NGL - will commit to filling its last ever export order of 4,400 cubic meter to Japan in October. As a replacement, the government is preparing to convert the area into a regasification facility. "The facility is ready, but we need to time it properly. We plan to get it going by January 2015," said Hendra.

According to Hendra, his company has underwent the necessary engineering, procurement, and construction process (EPC) to accelerate Arun's conversion into a regasification plant. "The project is valued at around US$100 million," he said.

During its initial phases, the plant will work on 12 cargos of LNG from Tangguh Block in Papua. To date, all the necessary processes for regasification has been set in motion for January 2015. "The reconverted gases will be used by electric power plants," said Hendra.

The Coordinating Minister of the Economy Chairul Tanjung said that the government has given its' gas reserves in Tangguh to be regasified in Arun. "It would be a shame to let that much gas go to waste," said Chairul at the same event.

Along with the establishment of the regasification plan, the government is planning to establish an integrated industrial center around Arun Block. "This has an appeal that we need to seriously develop," said Chairul.

JAYADI SUPRIADIN