PGN Gas Supply 10.5 BBTUD To Lotte Chemical Indonesia

Illustration (Photo: Doc. Antara)

PT PGN Tbk meets the natural gas needs of PT Lotte Chemical Indonesia (LCI) which is predicted to be one of the largest petrochemical industry investments in Southeast Asia and operates in Cilegon, Banten.

The Gas Sale and Purchase Agreement (PJBG) has been implemented between PGN and LCI for natural gas absorption of 2.62 10.5 BBTUD.

General Manager of PGN Sales Operation Region II (SOR II) Sonny Rahmawan Abdi explained that natural gas from PGN will be used for cooking fuel with the main product, namely Ethylene. The plan, Gas In will be carried out in June 2024.

PGN will build an infrastructure for the distribution of MRS gas and gas pipelines to LCI's buoyer for gas in June 2024. This is a form of PGN's commitment to expand natural gas distribution to industry. This LCI is a new plant, we hope that with a large enough volume of needs, it can be absorbed optimally and useful for production," said Sonny, quoted on Friday, June 16.

Sonny hopes that other industries can participate in using natural gas to support production and increase competitiveness.

Natural gas, which is relatively more environmentally friendly, provides an opportunity for LCI to become a green industry.

The distribution of natural gas to LCI is a matter of pride for PGN, because it can contribute to the investment of the government's strategic industry in order to reduce imports.

LCI is part of a group of South Korea-based petrochemical companies Lotte Chemical Corporation. LCI's petrochemical factories will be able to meet domestic and global petrochemical demand.

The production results from LCI can be a substitution of imported chemical products that are large enough, so that they can help maintain Indonesia's trade balance.

A big impact will also be useful in providing added value to the Indonesian economy.

The distribution of natural gas to LCI adds to the PGN portfolio in the West Java region managed by SOR II, especially the Cilegon area. PGN in the Cilegon area manages a gas pipeline of 319.3 KM.

The number of gas customers in Cilegon reaches 10,341 customers ranging from households, small/small businesses, and industrial commercials.

Throughout 2023, PGN in the Cilegon area was able to distribute 88 106 BBTD of natural gas.

"We would like to thank PT Lotte Chemical Indonesia for trusting PGN to supply natural gas for operations. This is a booster for us to improve performance in running the natural gas utilization business for industry," said Sonny.

PGN SOR II serves household customers to industries in West Java, DKI Jakarta, Banten, with areas consisting of Jakarta, Bogor, Tangerang, Cilegon, Bekasi, Karawang, Cirebon and its surroundings.