Pertamina Announces Arun LNG Plans

Indonesia's state owned firm Pertamina has announced its plan to build liquefied natural gas (LNG) regasification terminal in Arun, Aceh.

"We have established PT Rekayasa Industri as engineering, procurement and construction or EPC contractor," Vice President of Technology, Directorate Gas of Pertamina, Daniel Syahputra Purba said on Wednesday, Republika Online reported.

The project is expected to be complete in 19 months and is likely to cost $80 million. The gas pipeline will be ready by October 2014, Republika said. Pertamina has also appointed its subsidiary, Pertamina Gas (Pertagas) to hold a tender for regasification terminal project.

Arun LNG regasification terminal is expected to supply LNG to Aceh and North Sumatra, where gas supplies are still way below demand.