Abstract

The Arun Field, located in Aceh Province, Sumatra, was discovered in late 1971, and the Badak Field, located in East Kalimantan Province, was discovered in early 1972. Appraisal drilling has shown that both fields have very large natural gas reserves.

Both fields are located in relatively undeveloped areas and no local market exists for the natural gas. To produce the gas for export it will be liquefied and transported by tankers to overseas markets.

Facilities planned to liquefy natural gas from the Arun and Badak Fields will utilize similar processes. The natural gas delivered to the plants will be treated for carbon dioxide removal by mono-ethanolamine (MEA) absorption, dehydrated by molecular sieve adsorption, and liquefied by the Air Products and Chemicals, Inc. propane precooled mixed component refrigerant process (MCR). The liquefied natural gas (LNG) will be stored in aboveground, double-walled, insulated tanks and loaded onto 125,000-cubic-meter tankers for transport to buyers receiving terminals.

To date, LNG sales agreements have been negotiated, tankers contracted, a general contractor selected and appointed for the design and construction of the facilities, and financing for the projects is being assigned. Plant design and site selection are in progress and certain long delivery items of equipment are being ordered.

First delivery of LNG is scheduled for March, 1977 from Badak and January, 1978 from Arun.