Indonesia: Rekayasa Wins Arun LNG Contract from Pertamina

Indonesia’s Pertamina said that Rekayasa Industri won the tender to be the engineering, procurement, and construction (EPC) contractor for the Revitalization of Arun LNG Refinery into Receiving and Regasification LNG Terminal project.

Vice President Corporate Communication of Pertamina, Ali Mundakir, said that the EPC tender for the project had started in April 2012 and participated by five companies. After going through some selection stages, Rekayasa Industry was chosen as the best candidate to carry out the EPC project.

“We have picked Rekayasa Industri as the tender winner with the best offer last week. Rekayasa Industri has also committed to compete the task according to agreed time frame and quality,” Ali said.

The Arun LNG Refinery Revitalization into Receiving and Regasification LNG Terminal Project is planned to have total capacity of 400 Mmscfd. The gas supply is expected to be used by fertilizer industry, electricity fuel, and industry in Aceh and North Sumatera. So far, the project has not received any contractual final certainty for gas supply allocation.

The plan to supply 140 MMScfd gas to PLN from Tangguh LNG, which is planned to go through Arun Receiving and Regasification LNG Terminal, is also in still in discussion with the Government regarding the price.

Pertamina, he said, had also showed its interest to buy domestic LNG for the project to the Tangguh LNG producer, BPMigas and the Government.

The Arun LNG Refinery Revitalization is hoped to revive the industry in Aceh, maintain the sustainability of Iskandar Muda Fertilizer, and maintain the power supply the the west point province of Indonesia.

Besides, through the pipe project that will connect Arun and Belawan, gas supply for Arun receiving and regasification terminal will increase national energy security and the raw material industry in North Sumatera.

Furthermore, according to Ali, Pertamina has not signed the project contract with Rekayasa Industri because it still depends on the certainty of gas supply allocation.

For that, Pertamina supports the Government effort to finalize the gas supply certainty for strategic project for national security.

[mappress]

LNG World News Staff, November 7, 2012; Image: Pertamina