PGN: Mineral Jaya's LNG Production Is Expected To Flow From 2028

Illustration (Photo: Doc. Antara)

PT PGN Tbk (PGN) signed a commitment to a Memorandum of Understanding (MOU) for the Liquefied Natural Gas (LNG) supply from PT Karya Mineral Jaya (KMJ) with its production source coming from the LNG Bunyu Project located at the Nunukan WK.

PGN's Director of Strategy and Business Development Rosa Permata Sari said that in the coming year PGN estimates that LNG's volume will increase in the gas supply mix. This is in line with the dynamics of piped gas supply volume which has natural decline from several manufacturers.

"LNG KMJ production is expected to flow from 2028 with a capacity plan of 60 MMSCFD. In this case, PGN is one of the potential buyers who is interested in buying the volume of plant production," he told the media, Wednesday, January 24.

PGN and KMJ also agreed to look at other opportunities for cooperation in terms of participation in the participation of LNG infrastructure project development.

This is considering that apart from needs, PGN's extensive experience in the natural gas industry will have a positive impact on the implementation of the project.

ROsa said PGN needed reliable natural gas supply from upstream natural gas suppliers in Indonesia to be channeled through the transmission gas pipeline and distribution of PGN. Indonesia's latest domestic gas balance projection shows a decline in natural gas production since 2024.

This condition makes PGN need domestic LNG supplies, one of which is from WK Nunukan through the LNG Bunyu Project.

This domestic LNG supply is planned to be sent to the sales area of gas subholding which already has LNG recipient infrastructure spread across several locations such as the LNG Arun Terminal, West Java Floating Storage Regasification Unit (FSRU) and FSRU Lampung.

According to Rosa, cooperation has the opportunity to be continued in terms of mastery of technology and development of gas infrastructure with KMJ.

Given that PGN is already in the natural gas business ecosystem, so it can be easier to communicate.

PGN can support the needs of KMJ to grow together in this ecosystem.

"The allocation we got was an allocation from the Working Area for us to develop and process into LNG. We also really welcome the offer of cooperation in infrastructure development, because this is very important for us to manage the assets that are there. Hopefully this collaboration will strengthen so that in time we can sign the LNG PJB," said KMJ President Director Iriawan Yulianto.