PLN EPI Signs Agreement for Connection of WNTS-Pemping Pipe

PLN EPI agreement in Natuna (PLN EPI)

JAKARTA - PT PLN Energi Primer Indonesia (PLN EPI) finally got certainty of pipe connection with the operator of West Natuna Group from the Natuna Working Area. This certainty was obtained after the achievement of the Tie-in Agreement (TIA) for the West Natuna Transportation System (WNTS) pipe project - Pemping Island.

PLN EPI President Director Rakhmad Dewanto said the completion of the TIA was a crucial point that opened the way for the start of the physical construction of the WNTS-Pemping gas pipeline and also ensured the readiness of PLN EPI to absorb domestic gas from Natuna.

"With the agreement of this TIA, PLN EPI has certainty of access to the construction of the WNTS-Pemping pipeline to the WNTS pipeline so that the construction process can immediately begin in early February 2026," he said in a statement to the media, Wednesday, February 4.

He added that the construction of the WNTS-Pemping Pipeline was the assignment of the Minister of Energy and Mineral Resources given to PLN EPI. To carry out this assignment, PLN EPI has held long lead items, appointed Engineering, Procurement, and Construction (EPC) and obtained a Environmental Permit.

"This agreement is an important part of realizing the construction of the WNTS-Pemping pipeline, which has been a dream for more than a decade to flow gas from the Natuna working area to the domestic market, especially to support the reliability of the electricity system in the Batam and Central Sumatra regions," continued Rakhmad.

He added that the completion of this pipeline is also a unity to flow gas from the Duyung working area by signing a contract for the Coal Gas Purchase Agreement (PJBG) between PLN EPI and West Natuna Exploration Limited on July 11, 2025 with a volume of up to 111 BBTUD for 11 years.

PLN EPI Gas and Fuel Director Erma Melina Sarahwati said the agreement concluded a lengthy discussion, especially regarding the liabilities clause.

In the TIA that has been agreed upon, the liability scheme that was originally unlimited liabilities became limited liabilities, with a maximum value below 100 million US dollars.

"The insurance premium is partly borne by PLN EPI and partly borne jointly by WNTS JV Group. We thank SKK Migas and WNTS JV for their support", he continued.

Head of SKK Migas Djoko Siswanto emphasized that this project has a strategic meaning because it returns Natuna gas for national needs.

"Like a biological child who has never gone abroad to the country across the Singapore River, soon he will return to the hometown that he has long missed," said Djoko.

He added, SKK Migas also ensures that the liability and insurance scheme in the TIA remains in line with applicable provisions, while providing certainty for all parties to accelerate the development of the gas infrastructure.

With the completion of this agreement, PLN EPI will immediately carry out construction with the target of commissioning to be carried out in Semester 1 2026.