PGN Brings LNG From Berau, East Kalimantan

PGN (Photo: Antara)

PT Perusahaan Gas Negara Tbk (PGN) continues to strengthen domestic gas supply by bringing in Liquefied Natural Gas (LNG) from liquefaction facilities in Berau Regency, East Kalimantan.

This step is carried out in collaboration with PT National Energy Solutions (NES) to ensure national energy security and meet increasing demand.

PGN's Commercial Director, Ratih Esti Prihatini, said that the company continues to look for new sources of supply to meet gas needs, especially in the retail LNG segment.

The demand for gas increases, and the certainty of supply becomes crucial. We are also expanding the market to the central and eastern parts of Indonesia, where demand from the industrial and electricity sector is quite high," said Ratih, Tuesday, March 3.

As part of this collaboration, PGN will sign an LNG Sale and Purchase Agreement (PJBLNG) with NES. The LNG volume to be supplied ranges from 350,000 to 700,000 MMBTU per year. The duration of LNG distribution lasts for 5 years since PJBLNG is effective.

In addition, a subsidiary of PGN, PT PGN LNG Indonesia (PLI), and a subsidiary of NES, PT Nusa Energi Sejati (NUSA), plan to form a consortium to optimize the LNG Plant NES facility. Currently, PLI is conducting a due diligence on the LNG Plant NES before taking further steps.

"We are targeting the launch of the LNG Plant project every two years, with the hope that in five years we can build around 50 LNG facilities with the support of all parties, including PGN Group," said the Director of NES, Hendradi J. Suryanto.

This collaboration is a follow-up to the memorandum of understanding (MoU) signed in September 2023. PGN and NES are committed to optimizing domestic resources and suppressing energy imports, in line with the government's efforts to increase national energy security.