Realize The Vision Of Being An LNG Hub Leader In Asia, This Is A Business Roadmap For One Of Pertamina's Gas Subholdings

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Perta Arun Gas (PAG), Subholding Gas Pertamina continues to make efforts to strengthen its business as a provider of LNG infrastructure in order to affirm its vision of becoming the LNG Hub Asia leader in 2030.

This was stated by the Corporate Secretary of PT PAG, Hatim Ilwan in a media gathering with 32 journalists from Lhokseumawe and North Aceh at Cafe One Refinery, Gunung Salak, North Aceh, last Saturday, December 24.

One of the steps that PAG plans in the short term, according to Hatim, is to revitalize the ex-LNG holding tank Arun.

"And in parallel preparing a study plan for LNG Hub capacity development by adding 2-3 LNG Storage units within the next 5 years," he said in a written statement, Tuesday, December 28.

Hatim explained, of the five LNG tanks being managed, only four of them are already operating. The remaining one tank will be revitalized and is currently in the stage of finalizing the auction in order to find potential users.

"Alhamdulillah, three LNG players from Europe, Asia and the United States have been nominated from the many LNG players participating in the auction. God willing, it will be announced early next year. At the same time, the EPC tender for tank revitalization begins," he said.

Hatim detailed that of the four LNG storage tanks in operation, two of them are for domestic needs and the other two are optimized as international LNG hubs.

"The two domestic tanks are for storage of regasification results where the LNG comes from Tangguh, Papua. The regasified gas is channeled through pipes for the needs of fertilizer factories, power plants and industries," he explained.

Furthermore, PAG's main business is LNG receiving terminal, regasification and LNG Hub. The strategic location near the Malacca Strait with the potential for nearly 100 thousand ships to sail through is an important asset for PAG as a world-class LNG Hub center where its operation is fully supported by the government through the appointment of PAG as the only Bonded Logistics Center Manager (PLB LNG) in Indonesia.

"We also need to convey that in early 2022 there is a Japanese company that has a contract with PAG to store LNG for five years," added Hatim.

PAG also diversifies its business, such as LNG Vessel Cool Down (GUCD) which has been carried out at other LNG terminals, LNG Isotank Filling Station to reach consumers who do not have pipelines, and LNG & Fuel Oil Bunkering as international ship bunker services.

"LNG Bunkering provides LNG refueling services for ships passing through the Malacca Strait. This service encourages ships using fuel to switch to LNG in line with emission regulation regulations (IMO 2020)," continued Hatim.

Not stopping there, PAG is also developing the LPG Hub business by preparing two units of LPG Storage Tanks as LPG Hubs that will be used for international needs.

"This business diversification is supported by the area of special economic zones which reaches 1,600 hectares where PAG is in it, so that opportunities are open for investors. Thus there are no more issues of land acquisition and energy limitations," said Hatim.