PGN Signs PJB LNG With Industrial Customers In Eastern Indonesia

PGN MoU Buys LNG with industrial customers in Eastern Indonesia with PT Indogawa Teknologi Indonesia and PT Siantar Tara Sejati. (Doc PGN)

PT PGN Tbk officially signed the Liquefied Natural Gas (PJB LNG) Sale and Purchase Agreement with industrial customers in Eastern Indonesia, namely Operational Cooperation (KSO) of PT Indogawa Teknologi Indonesia and PT Siantar Tara Sejati. This agreement is a continuation of the Memorandum of Understanding related to the development of natural gas utilization in South Sulawesi.

The signing took place on Monday, November 25 in Jakarta by Hedi Hedianto, General Manager of Sales and Operation Region III PGN, and Mohammad Mufti Amin, President Director of PT Indogawa Teknologi Indonesia and Rusdi Ng as President Director of PT Siantar Tara Sejati. PGN's Commercial Director, Ratih Esti Prihatini, was also present to watch the event.

This collaboration utilizes LNG from the Simengline Working Area, North Kalimantan, through the PT Kayan LNG Nusantara facility, with a maximum volume of 2,888,000 MMBTU.

"PGN continues to expand and strengthen markets in central and eastern Indonesia," said Ratih. He explained that PGN continues to look for LNG supplies to support the use of natural gas for the industrial sector, especially in Makassar. We hope Makassar can become a center for natural gas development in Eastern Indonesia. The first quarter of 2025 will be an initial milestone for PGN to further develop in this region," he added.

PGN SOR 3 covers the East and Central Java regions, Bali, Nusa Tenggara, Kalimantan, Sulawesi, Maluku to West Papua. The number of PGN customers in this region is recorded at 203,754 in the household sector, 431 small customers and 605 commercial customers industry, with a commercial volume contribution of around 31% of the total volume of PGN's consolidated trading as of September 30, 2024. So this LNG utilization cooperation has the potential to increase PGN's trading volume, especially from the Eastern Indonesia area industrial sector managed by SOR 3.

Meanwhile, Mohammad Mufti Amin and Rusdi Ng expressed their hope that this collaboration would be a joint step to expand their wings. "We also hope to get continuity over gas distribution," said Mufti Amin.

With a positive response from the industrial sector, PGN is optimistic about increasing the accessibility of natural gas in Eastern Indonesia through the beyond pipeline (LNG and CNG) service, which is in accordance with the geographical conditions and needs of the region. (ADV)