October 1, 2015 [Platts] - Indonesia's state-owned oil and gas company Pertamina is to receive around 20 LNG cargoes to its recently commissioned Arun LNG import terminal in 2016, a senior official with Pertamina's subsidiary PT Perta Arun Gas, said at an industry event Wednesday.
The cargoes will be sourced from the domestic market, Surkani Manan, Planning and Production Manager at PT Perta Arun Gas, said at the Third Annual Indonesia LNG Conference being held in Jakarta September 29-30.
The pipeline distribution network around the terminal, located in Nanggroe Aceh Darussalam province, northern Sumatra, is expected to be completed in 2016, allowing the facility to reach utilization rates of around 50%, up from 25% in 2015.
Seven cargoes have been delivered to the terminal to date, including the Tangguh-sourced commissioning cargo delivered February 19 and a partial spot cargo from the Donggi Senoro LNG (DSLNG) plant delivered August 12.
Most imports into the terminal will continue to be sourced from the Indonesian Tangguh facility on Papua, as part of an LNG sales agreement between BP’s Indonesian unit and state-owned power company Perusahaan Listrik Negara (PLN) for the supply of up to 1.5 million mt/year through 2033.
The LNG will initially come from Tangguh’s existing two trains and then from Train 3, which is due to be commissioned in 2019, bringing the export plant’s total nameplate capacity to 11.4 million mt/year.
The agreement meets the commitment of BP and its partners to sell 40% of annual LNG production from Train 3 to PLN for the domestic market, according to a BP statement dated October 22, 2014.
Arun LNG, Indonesia’s first onshore regasification terminal, was converted from an export facility to an import terminal to meet growing gas demand in Indonesia’s domestic markets.
The facility exported its last LNG cargo in October 2014.
Pertamina currently operates two floating receiving terminals in Indonesia, including Nusantara Regas FSRU in West Java and Lampung FSRU off southern Sumatra.
