PGN And PAL Will Develop LNG Infrastructure

Illustration/ PGN Public Relations

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) signed a memorandum of understanding with PT PAL Indonesia (Persero) regarding cooperation in the development, construction, maintenance and improvement of gas technology, particularly LNG infrastructure.

The memorandum of understanding was signed by PGN's Director of Strategy and Business Development Heru Setiawan and PAL's President Director Kaharudin Djenod.

"PGN and PAL will carry out a joint study on the development and construction of an LNG carrier, gas storage tanks for PGN's business needs, and gasification of equipment and supporting facilities for the PAL factory. We hope that the study can be carried out comprehensively," explained PGN's Director of Strategy and Business Development Heru Setiawan in an official statement, Tuesday, August 3.

PGN and PAL will also carry out joint marketing in the gas for marine program, one of which is ship conversion. Moreover, PGN has a natural gas service program for the sea transportation sector through the conversion of marine transportation sector to LNG fuel, such as the conversion of Pertamina International Shipping (PIS).

In addition, this collaboration also includes the maintenance and repair of gas infrastructure owned by PGN, as well as other potential collaborations that support PGN and PAL's business growth.

Heru said, PAL has expertise in shipping and floating equipment, power generation equipment, oil and gas industrial equipment, turbines, offshore construction, and other machine tools.

"Technically, PAL has more capabilities, so PGN will absorb a lot of lessons from PAL later," said Heru.

According to Heru, it is important for PGN as a Gas Subholding to have the ability to master technology aspects. PGN as one of the industries in the oil and gas sector has risks and large costs, so it requires mastery of technology as well as understanding of commercial aspects. By prioritizing technological and commercial aspects, it can encourage effective and efficient implementation of strategic projects. PGN's Director of Infrastructure and Technology, Achmad Muctasyar added that PGN continues to implement ISO standard quality management. Mastery of technology is very important to maintain pipeline and non-pipeline infrastructure in hard-to-reach places. Likewise with the expansion of natural gas infrastructure which is not easy and remains in accordance with the safety aspect.

Achmad hopes that this collaboration with PAL can be useful for PGN in carrying out future implementations such as Kepmen-13, LNG supply to the RU IV Cilacap Refinery, Teluk Lamong LNG Terminal, FSRU in several locations, as well as PGN Trading.

“If PGN can continue to improve its technological aspects, it will be able to provide optimal energy services for the wider community. Various efforts have been made so that PGN can optimize its role as a reliable and professional natural gas manager in Indonesia in accordance with the values of good corporate governance," said Achmad.