PGN Cooperation In Infrastructure Development And Commercialization Mini LNG In Berau And Sumenep

JAKARTA - PT PGN Tbk as the Pertamina Gas Subholding and PT National Energy Solutions (NES) plan to carry out cooperation regarding the LNG Supply Chain Infrastructure and commercialization of LNG with NES in Berau Regency, East Kalimantan and Sumenep Regency, East Java. This collaboration was inaugurated through the signing of the Memorandum of Understanding (MoU) on Thursday, September 21 in the 4th IOG 2023 series in Nusa Dua, Bali.

The signing of the MOU was carried out by Harry Budi Sidharta as Director of PGN's Strategy and Business Development and Norman E Sebastian as President Director of NES, witnessed by the President Director of PGN, Arief Setiawan Handoko. This collaboration will collaborate on the role of PGN as a company in the field of natural gas transmission & distribution and NES engaged in gas infrastructure, both Compressed Natural Gas (CNG), Liquidized Natural Gas (LNG), and energy in general as well as electrical support efforts.

PGN cooperates with NES with respect to the NES has plans to develop two LNG midstream business projects related to the potential utilization of LNG products from Mini LNG Liquefaction Plant in the Berau Regency and Sumenep Regency Regencies. This is in line with PGN's efforts to expand natural gas services to new regions to grow new economic points through the use of clean energy of natural gas. With this plan, PGN can enter to simultaneously develop natural gas commercialization with the beyond pipeline scheme in both regions," said Arief in his statement, quoted Friday, September 22.

In Project 1 or Liquifaksi LNG Development in Berau Regency, East Kalimantan Province, NES has signed a Sale and Purchase Agreement with SDA South Bengara II Pte. Ltd as KKKS from SKK Migas in the South Bengara II Working Area (BellA Field Field Field). In the agreement, NES applies as the buyer of the Best Bella Field gas with a gas capacity delivered by 7 MMSCFD.

As for the 2 LNG Liquifaksi Project in Sumenep Regency, East Java, NES has signed a Sale and Purchase Agreement with PT Energi Mineral Langgeng (EML) as an ENC Field Manager in the South East Madura (ENC Lapalangan) Working Area with a delivery capacity of 0.06.5 MMSCFD. NES has also pocketed an agreement as a buyer of ENC Field Gas and EML.

"With the agreement that has been obtained by NES, it means that it is a form of supply certainty for the development of LNG utilization services in Berau Regency and Sumenep Regency. Then PGN can continue to expand distribution services in both regions," added Harry.

Andy Jaya Herawan as Director of LARAS said that his party had experience in commercializing LNG for industrial and retail needs for approximately 7 years.

"And at this time the availability of LNG is eagerly awaited by End User LNG, both existing and other potential Customers/End Users," he said.

This collaboration is proof of the synergy of business players in the natural gas distribution chain in midstream and downstream where PGN will carry out development from the downstream side (covering the market for LNG needs in small, medium and large industries) while the NES will carry out development from the midstream side (including the preparation of mini LNG plants, logistics etc.) facilities.

PGN also believes that this collaboration can be a step that benefits both parties, both PGN and NES. The implementation of cooperation can be carried out by subsidiaries or affiliates, each party in accordance with the competencies they have.

"We hope that this collaboration can become an entry point to serve customers using mini LNG plants. We also realize that future LNG development requires support from many parties, so we are very enthusiastic about collaboration. Hopefully, work can run smoothly to achieve the success of the Mini LNG Liquefaction Plant project and expand the use of natural gas in new areas, especially in Berau and Sumenep," concluded Harry.