Improve The Reliability Of The East Java Earth Gas Supply, Central Java And Its Surroundings, PGN And HCML SIGNing The 3M Field Agreement

Photo: Doc. PGN

JAKARTA - Pertamina's Gas Subholding in this case PT PGN Tbk and PT Pertagas Niaga signed a Joint Gas Purchase Agreement (KB) with Husky-CNOOC Madura Limited (HCML) for the use of gas supply from the development of the MDA-MBH-MDK (3M) Field by HCML in order to increase the reliability of natural gas supply in East Java, Central Java, and its surroundings. The 3M field is planned to start producing in the third week of October 2022. PGN welcomes HCML in developing this field with a plan to distribute 5 - 25 MMSCFD. The distribution of gas from the 3 M Field HCML is expected to meet customer gas needs in East Java, while increasing the reliability of PGN services to natural gas users in East Java, Central Java, and its surroundings. "Cooperation is expected to provide mutual value creation and PGN Group can immediately carry out its operations. Market is not only in East Java, but throughout the world. Hopefully we can reach this opportunity and we will conduct several technology and market development so that existing sources can be supplied throughout the world," said PT PGN President Director Tbk M. Haryo Yunianto at the signing ceremony of KB with HCML, Friday, October 21. At the same event, PGN's Director of Strategy and Business Development Heru Setiawan stated that in this Joint Agreement, the Gas Group Subholding became a multibuyer and was ready to support HCML in the use of 3M Field natural gas by distributing natural gas to customers in East Java and Central Java. What is being done today is an important and significant step in efforts to distribute natural gas to Indonesia. PGN and HCML have also collaborated in distributing natural gas from BD Field in East Java to fulfill natural gas for PGN customers in East Java since 2017. "This cooperation can certainly further increase the reliability of natural gas sources so that efforts to accelerate the use of PGN's natural gas not only in Central Java and East Java will expand without worrying about supply shortages," said Heru. "PGN's cooperation as part of this Gas Subholding with HCML adds to our optimism to increase our contribution to meeting gas needs, especially in the energy transition era. This is in line with a joint commitment to realizing equal distribution and resilience of environmentally friendly energy in Indonesia," added Bondan Christiandinata as Finance & General Affairs Director of the Commercial Task Force. HCML Executive Manager Wahyudin Sunarya also welcomed the agreement to use 3M Field with PGN. According to him, currently the oil and gas sector is in good momentum for investment and the field economy is very good for re-development. "We see PGN as a strategic partner and in our first field, BD Field, has been utilized by PGN. Today is a historic milestone, gas from HCML - 3M Field can be channeled to PGN. Hopefully this collaboration lasts forever and can go internationally because HCML is worldwide, so it can be an opportunity for PGN to go international," said Wahyudin. "In the future, PGN and HCML will continue to work together in utilizing the development of HCML Fields in East Java. PGN hopes that the reliability of gas supply can be maintained and the potential for natural gas potential can come from other supplies in Indonesia,” concluded Heru.