Teken Perjanjian, PGN Grup Serap Pasokan LNG IDD Bangka Dari WK Rapak

JAKARTA - PT PGN Tbk together with its subsidiary PT Pertamina Gas (Pertagas) and PT Pertagas Niaga (PTGN) signed the LNG Sales Purchase Agreement (PSA) Indonesia Deepwater Development (IDD) Bangka-WK Rapak by PGN, Chevron and ENI.

"The expansion of the use of natural gas through various modes of transportation is one of the group's PGN efforts in optimizing domestic natural gas absorption," said PGN President Director Arief Setiawan Handoko as quoted on Monday, September 25.

Arief hopes that the increase in natural gas absorption for various sectors of users will provide a multiplier effect to increase competitiveness, employment, and economic growth in the local and national regions.

Meanwhile, PGN's Director of Strategy and Business Development Harry Budi Sidharta added, the absorption of LNG volume from WK operated by Chevron Rapak Ltd will provide flexibility in distribution for PGN Group.

The flexibility of the utilization obtained include refineries, power plants, commercial, retail, industry, maritime sector, and land transportation.

PGN in this collaboration mandated Pertagas Group to absorb LNG volume from WK Rapak.

In 2023, Pertagas absorbed 0.06 cargo standards and the Pertagas Niaga absorbed 0.04 cargo standards.

Then in 2024, Pertagas will absorb 0.67 cargo standards and PTGN will absorb 0.33 cargo standards.

This LNG SPA signing was carried out to fulfill PGN's contractual mechanism in providing LNG from sellers (WK Rapak) to PGN. PGN is committed to maximizing the volume of 0.1 cargo standards, considering that PGN's need for 2023 is quite flexible. In 2024, LNG volume absorption will be increased to 1 standard cargo, "explained Harry.

President Director of Pertagas Niaga Aminuddin added that Pertagas Niaga is ready to follow up on the use of LNG from WK Rapak.

The utilization concept will be planned to use ISO Tanks in Bontang filling to serve retail needs.

Our view is very positive for the addition of the Bangka IDD LNG supply, considering the strategic role of LNG in meeting gas needs in areas that have not been reached by the gas pipeline. Hopefully PTGN can carry out this opportunity as well as possible and can even further expand LNG utilization during the energy transition," Aminuddin concluded.

PGN signed the LNG Sales Purchase Agreement (PSA) Indonesia Deepwater Development (IDD) Bangka - WK Rapak with Chevron and ENI.