LNG From PGN Will Be Transported By KAI, Distributed To Distribution Points

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Kereta Api Indonesia (Persero) and PT Perusahaan Gas Negara Tbk signed a heads of agreement (HoA) regarding cooperation in providing natural gas energy solutions and rail-based transportation/logistics conducted by KAI President Director Didiek Hartantyo and PGN President Director M. Haryo Yunianto.

"This SOE synergy is KAI's collaborative and adaptive step during the Covid-19 pandemic to maximize KAI's performance in the freight transportation sector," said KAI President Director Didiek Hartantyo in a press release, quoted from Antara, Friday, July 23.

Didiek said that KAI and PGN plan to optimize the utilization of rail transportation facilities and infrastructure in the context of developing gas networks for the household sector, including commercial and industrial. In order to implement the cooperation plan, KAI and PGN will carry out a trial or pilot project for LNG transportation by train.

"KAI is ready to transport LNG owned by PGN by train from various stations to distribution points owned by PGN. The advantages of transporting goods by train include scheduled delivery times, on time, more environmentally friendly, and safe," he said.

In order to prepare for LNG transportation by train, KAI will map rail transportation routes, data on facilities and infrastructure needs, loading and unloading methods, and others. Meanwhile, PGN will map customer demand profiles, analyze and recommend infrastructure needs along the LNG distribution chain, and others.

He said that in planning and preparing for the implementation of the cooperation plan, he continued to pay attention to the provisions of the applicable laws and the principles of good corporate governance.

"KAI itself has obtained a special permit from the Ministry of Environment and Forestry to transport B3 (Hazardous and Toxic Materials) for the DG class 2 category, which is in the form of gas," said Didiek.

In addition to the plan to transport LNG by train, KAI and PGN will also cooperate in the provision of natural gas-based energy solutions by PGN to KAI in the context of converting non-gas fuels to KAI facilities.

"KAI will also together with PGN continue to study and pilot the use of gas fuel to train power plants owned by KAI," he said.

Didiek added that this BUMN synergy is expected to provide added value for both companies, be able to provide benefits to the wider community, and help the national economic recovery in the future through reliable logistics distribution.