Artikel Tentang Arun Dalam Bahasa Inggris

8/3/2019 Artikel Tentang Arun Dalam Bahasa Inggris

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PT. ARUN NGL

PT Arun Natural Gas Liquefaction, better known as PT Arun NGL, is the

largest liquefied natural gas producer in Indonesia. In 1990, PT Arun was the

largest LNG producer in the world. PT Arun is a subsidiary of Pertamina. Located

in Lhokseumawe, North Aceh, Indonesia, the company has 6 processing units, but

currently only 2 units are in operation due to the depletion of natural gas reservesthere. PT Arun is one of the largest foreign exchange earners for the city of

Lhokseumawe and Indonesia.

History of Arun NGL

Since 1968, Mobil Oil sharing contracts with Pertamina to search for

sources of oil in onshore and offshore. In 1969, Mobil Oil began to exert its

search in Aceh with a primary focus in North Aceh. Drilling conducted near the

village of Arun is the fifteenth time conducted by Mobil Oil. Since the first search

in a location which indicate the source of energy to the point of the fourteenthdrilling in new fields that are not known earlier, the company has found oil and

gas with carbon dioxide content is too high making it difficult to develop.

Socony Oil Company, who once operated in Aceh has detected that there

is a substantial amount of gas content. On that basis, the search for Mobil Oil,

which is coordinated by Pertamina Unit I is concentrated in the village of Arun.

Arun Village is a village in the district Syamtalira, North Aceh, whose name was

later used as the name of this natural gas company.

October 24, 1971, natural gas that contained under the village Arun wasfound with estimated reserves stood at 17.1 trillion cubic feet. That day is day 73

since the test-led exploration of Bob Graves, chairman of Mobil Oil exploration in

Aceh, begins.

In 1972 the source of natural gas fields offshore in the North Sumatra

Offshore (NSO) was discovered, located in the Straits of Malacca at a distance of

approximately 107.6 km from the refinery PT Arun in Blang Lancang.

Subsequently in 1998 the project development NSO “A” is carried out,

covering units for gas processing facilities offshore and at PT Arun. This facility



was built to process 450 MMSCFD of natural gas from offshore as additional raw

material of natural gas from the Arun field in Lhoksukon that was diminished.

March 16, 1974, PT Arun was established as a corporate operator. The

company is newly inaugurated by President Soeharto on 19 September 1978 after

a successful first condensate exports to Japan (October 14, 1977).

Although Arun’s gas potential was discovered in 1971. There were several

development options during the early Arun period. One proposal suggested

sending Arun’s LNG to California. A second plan was to avoid investment in

liquefaction facilities by constructing a transmission pipeline to feed Singaporean

demand instead. A third prospect involved shipments of Arun LNG directly to

Japan. The third option was finally selected. The first stage of the liquefaction

plant cost about $ 1 billion. Arun sent its first LNG cargo to Japan in October

1978, followed by later supply contracts with South Korea and Taiwan.

Picture 1. PT Arun NGL Train

Arun’s Organization

President Director of PT Arun NGL based in Jakarta, which is currently held by

Fauzi Husin. While Vice President based in Lhokseumawe and held by Fuad

Bukhari. Vice President in charge of three divisions and three non-divisional level

sections, namely:

1. Production Division

2. Field Support Division

3. Development and Services Division



4. Public Relations Section

5. Finance and Accounting Section

6. Public Audit Section

Shares of corporate ownership held by Pertamina (55%), Exxon Mobil (30%), and

Japan Indonesia LNG Company (abbreviated JILCO; 15%).

Today’s Development

The Arun LNG facility has been an important contributor to the positive balance

of Indonesia’s national natural gas/LNG trade. Arun (Lhokseumawe, Nanggroe

Aceh Darussalam) has made noticeable contributions to the national and local

economy for more than three decades. Other gas-based industries developedaround Arun, including two leading domestic fertilizer plants, AAF (Asean Aceh

Fertilizer) and Iskandar Muda.

The multiplier effect on the local economy, including revenues to the local

government, has been significant, particularly after fiscal rebalancing between

central and local governments was implemented in the early 2000s.

The sad news is that the huge Arun LNG liquefaction plant (six train capacity

with four operational trains currently producing 6.5 million tons per

annum/MTPA) will terminate operations in 2014. The information was submitted

by President Director of PT Arun NGL, Fauzi Husin now stay in touch with the

management of the Veranda of Indonesia in Banda Aceh, on Saturday (27/11).

“Arun LNG contract will expire in 2014. (After that) although natural gas in some

gas fields still remain, but are no longer economically used as LNG, “said Fauzi

accompanied by the Corporate Secretary of Suparman T, Abdi B Head of Public

Relations, and Corporate Social Responsibility Supervisor, Irwandar.

According to Fauzi, after 2014, if still there is supply of gas left but could no

longer be used as LNG because of the pressure and the lower quality gas.

Residual gas could only be used to manufacture fertilizer. Currently, he added, PT

Arun operates in the minimum capacity, i.e., only 2 unit trains from the existing 6

unit train, with a total production of only 35 cargos (2 million tons of LNG). Arun

even had manufactured 224 cargos (16.5 million tones of LNG), when the

production peak in 1994.

He predicted that in 2011 PT Arun only able to produce 30 cargo of LNG, in 2012

as many as 24 cargo, in 2013 and 2014 respectively only 20 cargo of LNG. “All

the rest of the production was to fulfill a contract with Korea and Japan,” he said.



Fauzi explained, after the end of the operation of the company in 2014, PT Arun

LNG plant still deserve to be receiving terminal (terminal gas). “Later on LNG

from the outside to be brought to the Arun gas to meet domestic needs,” he said.

Since the operation of PT Arun NGL 1971, in North Aceh have appeared various

gas-based industries, such as PT PIM, AAF, PT Humpuss Aromatic, and PT KKA

that use natural gas as an energy source driving the refinery.

Arun is currently a joint venture company that only employs about 450 employees

from 2600′s of employees before. Some employees of PT Arun has been early

retirement and work in various overseas companies such as LNG in Abu Dhabi,

Qatar, and Yemen. The composition of PT Arun NGL currently covers 55 percent

owned by Pertamina, 30 percent owned by Mobil LNG Inc. (Exxon Mobil), and

15 percent owned by Japan’s association of gas buyers (Japan Indonesia LNG

Company/JILCO).

Declining production from the current gas fields and expiration of major LNG

sales contracts are the main reasons for scaling down the plant’s operations.

Declining gas production has impacted some fertilizer plants, which have faced

temporary shut downs because of deficient gas supply after the limited Arun

supply was prioritized to feed long term contracts with overseas buyers.

Three years does not leave a comfortable time frame to build new infrastructure or

prepare for a post industry transformation. Given the potential impacts, pre-2014

planning must comprehensively analyze the impact of Arun’s decline on the local

economy.

The termination of Arun LNG plant operations is not only a shareholder

concern (Exxon Mobil, Pertamina and Japanese buyers), but will also impact

many other stakeholders. The industry’s benefit to the local economy, as well as

its large influence on socio-political conditions, will hopefully invite attention

from wider stakeholders, including the local and central government and theassociated ministries (industry, energy, etc). They all need to share responsibility

for Arun post-2014.

Indonesians still remember that Acehnese suffered mistreatment in the past, some

of which was blamed on the management of the natural gas industry. Post-LNG

Arun not only concerns matters of whether the current LNG liquefaction activities

should be converted, for instance, to an LNG receiving terminal, but it also has to

take political concerns into more serious account, particularly issues of fairness in

the distribution of revenues and the accommodation of local interests. The current



LNG liquefaction plant facilities are still in working condition, as are the other

gas-based plants nearby (fertilizer, petrochemical, etc.).

Artikel Tentang Arun Dalam Bahasa Inggris

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