Pertamina Gas Subholding Supply 45 BBTUD To Pupuk Iskandar Muda

PT Pertagas Niaga and PT Pupuk Iskandar Muda (PIM) signed a letter of agreement (LOA) in Yogyakarta, Monday (23/5/2022). ANTARA/HO-PT Pertagas Niaga

Pertamina Gas Subholding Supply 45 BBTUD to Pupuk Iskandar Muda

JAKARTA - PT Pertagas Niaga, as part of the Gas Subholding PT Pertamina (Persero), and PT Pupuk Iskandar Muda (PIM) signed a letter of agreement (LoA) for the implementation of ESDM Ministerial Decree 134 of 2021 in order to provide sustainable and competitive energy.

The signing was carried out by the President Director of Pertagas Niaga Aminuddin and the Director of Operations and Production of Pupuk Iskandar Muda Jaka Kirwanto in Yogyakarta.

"Subholding Gas always supports the government's steps to support the progress of the national industry. This collaboration with PIM has an important meaning for us because apart from being a consumer with a large absorption of gas in Sumbagut (northern Sumatra), what we are doing is also part of a BUMN synergy ," Aminuddin said in his statement in Jakarta, reported by Antara, Monday, May 23.

According to the Minister of Energy and Mineral Resources Decree 134/2021, PIM received an allocation of 45 BBTUD of natural gas.

Gas for PIM is then supplied by Pertagas Niaga which gets an upstream allocation from the Block A Working Area. With the implementation of the Minister of Energy and Mineral Resources 134/2021, it is hoped that the domestic fertilizer industry can continue to develop so as to make a positive contribution to domestic agriculture.

Aminuddin continued that the implementation of the Minister of Energy and Mineral Resources is also expected to bring efficiency in PIM production costs so as to encourage productivity to produce high-quality and competitive products.

"We strive for a guaranteed gas supply for PIM, so that its benefits can make a positive contribution in supporting agricultural productivity and national food security," he added.

PIM also expressed a similar appreciation, which believes that this collaboration will bring a positive contribution to the fertilizer industry in Indonesia. Until now, Pertagas Niaga, as part of the Pertamina Gas Subholding, supplies gas needs for the northern Sumatra region of 70 BBTUD.

In addition to PIM, gas supplies through pipelines and LNG are provided to industries in the SEZs of Sei Mangkei, Kuala Tanjung, and Medan.

Subholding Gas Pertamina believes that the use of natural gas by the industry will continue to increase along with the awareness to switch to gas as a transitional energy that is more environmentally friendly.

This is also to support the government's commitment to declare net zero emissions by 2060.