Agree To Sell And Purchase Gas With Donggixino, PGN Buys 135,000 M3 LNG

Illustration (Photo: Doc Antara)

JAKARTA - PT PGN Tbk received additional new LNG supplies from domestic sources managed by PT Donggi-Senoro LNG (DSLNG).

PGN and DSLNG have agreed on a contract for the LNG purchase umbrella through the Master LNG Sale and Purchase Agreement (MSPA).

The agreement has also been followed up with the signing of a Memorandum confirmation for the plan to purchase one LNG cargo in September 2024 (CM September) of 135,000 m3 equivalent to 3,159,000 MMBTU.

The agreement between PGN and DSLNG will increase the gas supply from LNG regasification for the areas of West Java, South and Central Sumatra.

With a term of 5 years of agreement, it is hoped that it can increase confidence in the absorption of natural gas for the sustainability of the provision of environmentally friendly clean energy for business activities and investment, especially from the industrial and commercial sectors.

"The addition of gas supply in the form of LNG to meet demand needs and maintain the investment climate of the industrial and commercial sectors," said PGN's Director of Strategy and Business Development Rosa Permata Sari, Tuesday, August 13.

With LNG's increasing demand growth, said Rossa, PGN continues to coordinate with gas field operators to explore opportunities for potential additional LNG from various sources.

"Seeing the growth in LNG demand which was positively welcomed by the industrial & commercial sector which has reached around 50 BBTUD, PGN will always carry out its commitment so that LNG's supply can still be relied on for business continuity," added Rosa.

In addition to meeting the needs of existing customers, the addition of gas supply from LNG regasification can also increase the potential for market penetration.

The use of LNG is the most feasible consideration at this time in the midst of the challenge of declining natural natural natural gas production.

Rosa added that LNG absorption is also expected to contribute volume in order to achieve the 2024 commercial volume target.

So far, PGN has maintained its 2024 commercial volume target of 954 BBTUD.

PGN already has capabilities in LNG management and distribution. In addition to supporting the national economic climate, LNG can be an environmentally friendly and sustainable energy source to support net zero emissions targets by 2060," concluded Rosa.