Strengthening Natural Gas Supply Resilience, PGN Collaborates With EMCL To Pertamina EP

The signing of a collaboration between PT Perusahaan Gas Negara Tbk (PGN) and ExxonMobil Cepu Limited (EMCL) to PT Pertamina EP (PEP) in an effort to increase the resilience of national natural gas supply in Nusa Dua, Bali. (Photo: Doc. PGN)

BALI PT PGN Tbk as Pertamina Gas Subholding with EMCL, HCML, Pertamina EP & Petronas are synergizing together in an effort to increase the resilience of national natural gas supply.

This effort was made by PGN in accordance with the company's commitment to maintain energy supply resilience.

The signing of the 4 agreements was signed by the Director of PGN's Strategy and Business Development, Harry Budi Sidharta and Main Management partners, witnessed by the Head of SKK Migas, Dwi Soetjipto, KKKS Main Management, and PGN President Director Arief Setiawan Handoko in the IOG 4th 2023 series in Nusa Dua, Bali, Friday, September 22, 2023.

"PGN is committed to maintaining the satisfaction of natural gas services by maintaining the sustainability of gas supply. Today is a tangible form of milestones in PGN's efforts with stakeholders in the upstream sector to maintain sustainable supply commitments. Natural gas supply resilience is important for all segments of customers and the sustainability of the natural gas business. So PGN is trying its full efforts so that the resilience of natural gas supply is maintained and committed to underlying it in the GCG principle in the implementation of commercialization," said PGN President Director Arief Setiawan Handoko.

In line with the increasing demand for natural gas in East Java and Central Java, in an effort to maintain gas supply resilience for the region, PGN group signed two agreements, namely with Husky CNOOC Madura Ltd (HCML) and Exxon Mobile Cepu Ltd (EMCL).

PGN-HCML signed a PJBG with a volume of 5 MMSCFD with a period of 10 years from the 3M field in East Java.

PGN through the affiliate of PT Pertagas, also signed a Head of Agreement (HOA) with (EMCL) with a gas volume of 14 MMSCFD for 10 years which PGN will use and affiliates to strengthen supply security and meet the needs of gas consumers in East Java and ensure long-term gas availability.

We really welcome the collaboration with upstream colleagues as PGN's strategic partner for resilience in East Java, Central Java, North Sumatra and its surroundings. Our optimism is also high with all upstream stakeholders to increase their contribution to the fulfillment of gas needs, especially in the energy transition era, in line with the joint commitment to provide a multiplier effect of the economy and environmentally friendly energy resilience," added Arief.

Furthermore, PGN and its Malaysian Petronas subsidiary, PC Ketapang II Ltd (PCK2L) signed a Memorandum of Understanding to utilize gas supply from the Ketapang Working Area ramp up 5 20 MMSCFD where this volume will be adjusted from the results of the evaluation study.

PGN has natural gas needs in 2024 and so on with an indicative volume of 5 MMSCFD for industrial and electricity needs in East Java, Central Java, and its surroundings. From PCK2L, it is stated that there is a potential gas volume from WK Ketapang that can be utilized by PGN. Therefore, PGN intends to utilize gas supply from WK Ketapang in the long term so that it can be optimized by PGN," said PGN's Director of Strategy and Business Development Harry Budi Sidharta.

After this, Harry admitted, his party and PCK2L will examine more deeply the use of natural gas potential from WK Ketapang, to optimize, increase supply reliability, and fulfill PGN gas.

In addition to PCK2L, PGN together with Pertamina EP signed the Pertamina EP Medan Gas Sale and Purchase Agreement (PJBG) with a supply volume of 3.5 to 4 BBTUD.

This step follows up on the Joint Agreement previously signed by PGN with Pertamina EP, as well as to increase supply in North Sumatra and its surroundings.

Good cooperation between PGN and partners upstream is expected to maintain the supply chain of natural gas in a sustainable manner.

This is also in line with the government's program in optimizing the use of domestic natural gas in the current energy transition era and PGN as Pertamina Gas Subholding is ready to carry out this mandate to carry out this strategic role.