PGN Signs Agreement For Sale And Purchase Of Natural Gas From Corridor Block

An illustration of a gas pipe (photo: dock. Antara)

PT PGN Tbk (PGN) signed a Gas Sale Agreement (PJBG) with Medco E&P Grissik Ltd (MEPG) sourced from Corridor Block, South Sumatra.

PGN President Director, Arif Setiawan Handoko, said the 5-year term contract was an extension of the previous agreement which had lasted for 20 years and ended on September 30, 2023. With this new agreement, PGN will receive a volume of approximately 410 BBTUDs since the end of December 2023 and then the volume flowing will adjust the production capabilities of the Block.

"We are grateful to all relevant parties so that PJBG has been signed for the next 5 years. This is proof of the Government's commitment, KKKS and PGN in serving industry and retail, especially natural gas users throughout Sumatra Island, West Java and Riau Islands," said Arif, Tuesday 19 December.

The volume that will be channeled will be intended for various consumers, namely the electricity, industry, medium and small business actors, transportation and households. This agreement will greatly assist customer operations and energy services and encourage customer performance to be more competitive in business and compete both on a domestic and international scale.

In meeting the needs of existing and future demand, PGN will also continue to strive for supply security for the same level of service, through pipeline and LNG gas. With the challenges of economic and business growth going forward, the use of natural gas both through pipeline and LNG will increase.

As of TW3 2023, the total volume of natural gas trading is 935 BBTUD with the main contribution of pipeline gas supply. This figure serves the demand for natural gas customers from 3,019 industries and commercial, 1,967 small businesses and 834,165 households.

PGN hopes that this agreement will provide certainty of business continuity for stakeholders in the natural gas business chain and then increase business competitiveness and sustainable national economic growth.