Pertamina and PLN signed a deal to regasify LNG produced at the BP-operated Tangguh project at Arun plant, Aceh

Indonesia’s national oil and gas company Pertamina and state-owned utility Perusahaan Listrik Negara (PLN) have signed a deal to regasify LNG produced at the BP-operated Tangguh project at the Arun plant in Aceh. PLN will provide around 105 million cubic feet per day of LNG from Tangguh to Arun. Pertamina is in the process of converting the Arun LNG plant into a receiving and regasification facility that will send out feedstock gas to consumer groups including industries and the Belawan power plant located in north Sumatra. Pertamina will also be investing up to $400 million in a gas pipeline to connect Arun and Belawan. The pipeline, with capacity to transport 200 million cubic feet of gas per day, is expected to come into operation by 2015.