PGN Obtains Additional LNG Supply From Tough Refineries In Papua

PT PGN Tbk, as the Gas Subholding of PT Pertamina (Persero), obtained additional supplies of liquefied natural gas (LNG) from the Tangguh Refinery, Papua.

"This is an important milestone for us. LNG is one of the best efforts we have made with the government and suppliers to answer the challenges of domestic natural gas needs," said PGN Commercial Director Ratih Esti Prihatini in a statement quoted by Antara in Jakarta, Sunday.

The signing has agreed on an LNG purchase umbrella contract through the Ex-Ship LNG Sale and Purchase Agreement (MSA).

This commitment has also been followed up with the signing of a Confirmation Notice (CN) for LNG purchases in June 2024 of one cargo or the equivalent of 2.6 million MMBTU.

Ratih said the MSA contract was a tangible manifestation of the efforts of all stakeholders to provide sustainable natural gas for their users in Indonesia.

The five-year agreement period is expected to increase confidence for enthusiasts and users of natural gas, especially for industry and commercial sector players, who require sustainability in doing business and investing.

"The absorption of LNG in the West Java region has a positive response from customers. This is evident from the volume absorbed reaching 45 BBTUD in May. This figure is higher than our initial estimate," added Ratih.

As of the first quarter of 2024, the volume of natural gas trading has reached 858 BBTUD. Efforts to increase sales volume in various regions continue to be carried out, he continued, both in areas where there is a network and penetration of new regional infrastructure.

So far, PGN is also still maintaining the target volume of commercial in 2024 of 954 BBTUD.

"PGN will always support the development of the national natural gas market through infrastructure development that is safe, reliable, and sustainable to support government programs in the national energy transition and realize net zero emissions," said Ratih.