KJG And BAND Agree On Cooperation To Use Natural Gas Pipe Capacity From WK Muriah

JAKARTA - PT Kalimantan Jawa Gas (KJG) signed a memorandum of understanding (MOU) with PT Bahterah Andalan Gas (BAND) regarding the Utilization of Natural Gas Pipe Capacity.

Meanwhile, through this collaboration, KJG will act as a transporter and PT BAND as a company engaged in industry and natural gas trading, one of which is CNG will become the third shipper candidate from KJG, after PGN and Pertamina.

Director of KJG R. Mohamad Edwin explained, the volume of gas usage is planned at 3 - 5 MMSCFD from WK Muriah.

"We hope that this cooperation can be realized in the near future. We also strongly support the BAND plan to get allocations from the Kepodang field. To be sure, the BAND does not need to worry, because currently the Kepodang field can still be relied on for production and the surrounding fields. The KJG pipeline is in a strategic position, so we hope that it can be used not only for electricity needs, but also for other users around Central Java," said Edwin, Saturday, August 5.

The KJG ensures the provision of natural gas transportation pipes that will be utilized by the BAND along the past 200 KM from the Kepodang Field, Muriah Working Area. On the other hand, BAND is submitting an application for natural gas allocation to the Ministry of Energy and Mineral Resources and conducting a process of submitting gas buyers to Cooperation Contract Contractors (KKKS), Oil and Gas SKK, and other parties at the Kepodang Field for project implementation.

Director of BAND Pamiarto Saptosadewo has the same hope that with so many new potential customers and increasing demand for them, KJG is able to support this movement. So in the future, this collaboration can be increased to gas transportation agreement.

BAND was founded in 2018 and is part of PT Super Energy Tbk. BAND is engaged in the downstream natural gas industry that produces CNG with a CNG plant in Rembang, Central Java. Its production capacity is 32.7 MMSCFD. BAND also has a direct allocation from the government for gas utilization at Randugunting II Well which is managed by Pertamina Hulu Energi.

Meanwhile, KJG currently has and operates a natural gas transportation facility in the form of a transmission pipeline along 10-1000 KM with a diameter of 14 inch which connects gas sources from the Kepodang Field for Muriah Working Areas with KJG facilities at ORF Tambak Lorok, Semarang, Central Java.

We always maintain pipeline performance and supporting infrastructure for gas distribution from the Muriah Working Area. KJG as a gas transporter, distributes gas from Saka Energi Muriah's Kepodang gas well to the KJG Tambak Lorok ORF. Then it is utilized to meet the gas needs to Indonesia Power Semarang PGU of 10 25 BBTUD. We want the gas distribution to be wider, so we are also ready to partner with various parties in its realization," said Edwin.