Boosting The Glass Industry At KIT Batang, PGN Distributes 8 BBTUD Natural Gas

PT KCC Glass Indonesia as the producer of sheet glass located in the Batang Integrated Industrial Zone (KITB)/ Photo: IST

JAKARTA PT Perusahaan Gas Negara Tbk or PGN distributes natural gas for factory operations, PT KCC Glass Indonesia as the producer of sheet glass located in the Batang Integrated Industrial Zone (KITB). The plan to use gas at the factory is 8 billion British thermal units per day (BBTUD).

The Gas Sale and Purchase Agreement (PJBG) was signed by KCC Glass Indonesia and PGN in February 2024 with plans for natural gas distribution to increase gradually.

PGN President Director Arief Setiawan Handoko explained that PGN has built natural gas distribution infrastructure within KIT Batang along 5 KM with an 8 inch diameter from the Phase I Cisem Transmission Pipeline.

For gas distribution to KCC Glass, he continued, PGN uses supplies from the Jambaran Tiung Biru PEPC. Therefore, gas fulfillment to KCC Glass Indonesia is a form of increased utilization of the Cisem Phase 1 Transmission pipeline and domestic wells at JTB Field.

"Infrastructure reliability which has now been integrated is also always maintained so that gas distribution runs safely and smoothly, so that the use of PGN's natural gas can provide economic benefits for the industry," he said in an official statement, Sunday, July 28.

In addition, Arief said PGN was indeed boosting the acceleration of natural gas absorption in Central Java and East Java. Moreover, the integration of Gresem Pipes and Cisem 1 Pipes can PGN continue its development for final users.

"Infrastructure integration encourages increased absorption of natural gas in Central Java from 48 BBTUD to 60 to 70 BBTUD," he explained.

Arief said that PGN had previously made efforts to fulfill natural gas in Central Java using the CNG mode of transportation, considering that Central Java had not been connected by the natural gas pipeline network.

"This infrastructure integration cannot be separated from the cooperation between the government and business entities, one vote so that the use of natural gas in Central Java and East Java will increase. We hope that demand will also increase and PGN will spur gas distribution," said Arief.

The fulfillment of natural gas energy at KIT Batang, continued Arief, was part of PGN's follow-up at the government's direction regarding the fulfillment of gas infrastructure at KIT Batang.

Furthermore, he said this industrial area was also considered a pilot for the development of industrial areas in other areas. PGN also fully supports the use of Cisem I Pipes which are connected to KIT Batang.

PGN is ready to collaborate with various parties for the reliability of infrastructure and natural gas supply in Central Java. It is a great pride for PGN to be an energy provider so that it can support investment growth and industrial competitiveness in KIT Batang and other industrial areas," Arief concluded.