PGN Collaborates With Badak To Supply LNG To RU IV Cilacap

Photo: PGN Doc

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) cooperates with PT Badak Natural Gas Liquefaction (Badak LNG) in business development and utilization of the LNG terminal.

President Director of PGN, Haryo Yunianto said that his party and Badak LNG had signed the main points of a cooperation agreement as a synergy between PT Pertamina (Persero) affiliates regarding the provision of LNG storage and break bulking facilities at the Bontang LNG Terminal facility operated by Badak LNG with the Terminal scheme. Use Agreement (TUA) or other schemes.

"This collaboration is to support the need for storage and break bulking of LNG in the distribution of LNG to Small Land Based LNG Regasification in Cilacap," said Haryo in an official statement, Jakarta, Sunday, August 15.

Small Land Based LNG Regasification in Cilacap will operate to fulfill gas supply to Refinery Unit (RU) IV Cilacap in stages up to 111 MMSCFD for 20 years. RU IV Cilacap is one of the large LNG market potentials for Subholding Gas and an entry point in the development of the retail LNG market in southern Central Java.

In addition, PGN and Badak LNG have also signed a Memorandum of Understanding regarding the Joint Study of the LNG Business and its facilities. The signing was carried out by the Director of Strategy and Business Development of PGN Heru Setiawan and the President Director & Chief Executive Officer of PT Badak Natural Gas Liquefaction, Gema Iriandus Pahalawan.

"From the signing of this memorandum of understanding, PGN and Badak LNG will prepare a joint study covering the LNG business and its facilities, as well as regarding the supply of an LNG Hub to meet gas needs in Cilacap, Teluk Lamong LNG Terminal, Smelter Sector and Global Markets," explained the Director of Strategy and Global Markets. PGN Heru Setiawan's Business Development.

Heru continued, the joint study conducted was also regarding the supply of mini LNG, the provision of LNG bunkering, the development of domestic and international LNG. PGN and Badak LNG are also open to other potential collaborations that can be mutually beneficial.

The transformation of PGN's role as Gas Subholding strengthens PGN's role in managing the national natural gas business, including LNG. For this reason, PGN will focus on strategic matters and grow the business segment.

Opportunities in the LNG era are used by PGN to improve business performance and support Oil and Gas Holding strategic programs such as decarbonization and efficiency, one of which is through the supply of LNG for the Cilacap Refinery and the construction of an LNG Terminal.

In the domestic market, the LNG business will have a major contribution through the fuel to LNG conversion project for PLN power plants in accordance with Ministerial Decree 13/2020. As for overseas markets, the company approaches LNG players in target countries. PGN has also begun to focus on the global market with Japan, South Korea, Hong Kong, China, Southeast Asian countries, and European countries as target countries.