REPUBLIKA.CO.ID, JAKARTA -- State-owned oil and gas firm Pertamina has begun constructing the Arun liquefied natural gas (LNG) in Aceh Province which is expected to be completed at the end of 2014.

Pertamina Director for Gas affairs Hari Karyuliarto said in a press release here on Sunday that the gas project was expected to meet the need for gas of Aceh and North Sumatra provinces.

"The gas terminal is the first LNG refinery conversion into regasification project," Hari said.

The groundbreaking ceremony was conducted on Saturday by Hari at the LNG Plant site in Arun, Lhokseumawei, North Aceh.

President Director of PT Rekayasa Industri Mochammad Ali Harsono, President Director of PT Pertagas hndra Jaya and President Director of PT Pera Arun Gas Teuku Khaidir also attended the groundbreaking ceremony.

LNG conversion of LNG refinery project into regasification was first decided by the government in 2012.

The Arun Terminal has a capacity of 400 million metric standard cubic feet per day (MMSCFD) or three million tons per annum.

Hari said that at present the terminal's gas commitment was still 120 MMSCFD for state-owned power firm PLN.

The Arun terminal will be integrated with Arun-Belawan transmission pipes which stretch 340 km long.

At present, the construction of pipes with an open access scheme is underway and is scheduled for completion in 2014.

It is expected that about 50 percent of the project would be completed at the end of 2013. The project is worth US$570 million, of which US$80 million for the construction of the terminal.

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