Natural gas supply from Arun estimated to run dry in 2014

Natural gas supply from Arun estimated to run dry in 2014

JAKARTA (JP): PT Arun Natural Gas Liquefaction (NGL), a
subsidiary of the State-owned Oil Company (Pertamina) located in
the northern tip of Sumatra, may have to stop production by 2014
when its supply from the Arun gas field runs out.

Vice President of PT Arun NGL, Indra Kartasasmita, said in a
hearing with Commission VI of the House of Representatives here
yesterday that unless new gas fields are discovered and
developed, the LNG plant will have to cease production in 2014.

"Even before 2014, the LNG plant will have to shut down two of
its six production trains beginning in the year 2000 due to the
decrease in gas supplies from the Arun field," he pointed out.

He said PT Arun has nonetheless increased production to 135
percent of its installed capacity to meet foreign demand.

PT Arun NGL is 55 percent owned by Pertamina, 30 percent by
Mobil Oil Indonesia Inc. and 15 percent by Japan Indonesia LNG
Co.

Exploring

Kartasasmita said Pertamina and its contractors are still
exploring new natural gas resources in Aceh and other parts of
Indonesia in anticipation of the depletion of gas reserves in
Arun.

Pertamina and Mobil Oil have discovered reserves in Langsa,
East Aceh but they cannot be used for the LNG plant because they
contained too much carbon dioxide.

The LNG plant can use gas with a maximum CO2 content of 15
percent.

Kartasasmita told the commission that PT Arun's LNG production
increased steadily from 24.1 million cubic meters in 1989, to
26.7 million cubic meters in 1992 and 27.3 million cubic meters
in l993, and is estimated to reach 27.7 million this year.

Its condensate output, however, declined from 124,700 barrels
a day in 1989 to 105,400 barrels in 1993 and is estimated to
decline further to 84,200 this year.

PT Arun's liquefied petroleum gas production also is projected
to decline from 1.6 million tons in 1993 to 1.49 million tons
this year. (02)