Questioning The LNG Project That Made Ahok Examined By The KPK

YOGYAKARTA President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama alias Ahok on Tuesday, November 7, 2023, was questioned by the Corruption Eradication Commission (KPK) as a witness in the alleged corruption case in the procurement of Liquefied Natural Gas (LNG) in 2011-2021.

Ahok was asked for information to make clear the actions of the President Director of PT Pertamina (Persero) for the 2009-2014 period Galaila Karen Kardinah alias Karen Agustiawan who has been named a suspect. So, what kind of LNG project has made Ahok investigated by the KPK?

The former governor of DKI Jakarta did not comment much on the examination he was undergoing at the KPK building.

Even so, Ahok briefly explained that Pertamina's work contract with a company in the United States (US) named Corpus Christi Liquefaction (CCL) LLC which was claimed to be still long. He said that this was what KPK investigators asked him.

"The contract is long. That's why this is the material here. You asked them (investigators, ed) but this is a very long contract," said Ahok, launching VOI.

The LNG project that made Ahok investigated by the KPK was a liquid natural gas import project aimed at overcoming the gas deficit in the country which is believed to have occurred in 2009-2040.

To realize the project, PT Pertamina issued a policy of collaborating with various LNG producers and suppliers abroad.

Quoted from Pertamina's official website, on December 4, 2013, Pertamina signed an LNG sale and purchase agreement with Cheniere Energy, Inc. The US-based company was asked to provide 0.8 million tons of LNG per year for 20 years. The supply was taken from the LNG refinery near Corpus Christi, Texas, United States.

The LNG import policy is claimed to be Pertamina's first time from an international supplier. The policy aims to meet Indonesia's energy needs amid rising domestic gas demand.

For information, Cheniere Energy, Inc is an energy company domiciled in Houston, USA. They are engaged in the LNG sector and operate the LNG fire Pass terminal as well as the Creole Trail Pipeline in Louisiana.

Meanwhile, The Corpus Christi Liquefaction Project managed by Cheniere has 3 LNG trains with a production capacity of 13.5 million tons per year (MTPA).

The LNG imported from the US is planned to be distributed to a number of terminals belonging to Pertaamina, including the Arun LNG Storage & Regasification Terminal and the Central Java FSRU. This means that the project to purchase liquefied natural gas cannot be separated from the gas storage construction project in Indonesia.

However, the realization of the project turned out to be problematic. The KPK suspects that Karen Agustiawan, who served as President Director of Pertamina for the 2009-2014 period, unilaterally decided on the LNG sale and purchase agreement without a study to a thorough analysis. In fact, he also did not report to Pertamina's board of commissioners.

"GKK alias KA unilaterally immediately decided to enter into an agreement contract with the company CCL (Corpus Christi Liquefaction) of the United States LLC without conducting a thorough study and analysis and not reporting to the Board of Commissioners of PT Pertamina Persero," said KPK Chairman Firli Bahuri at a press conference at the KPK's Red and White Building, Kuningan Persada, South Jakarta, Wednesday, September 19.

Firli said that the report should have been made because it would be brought to the General Meeting of Shareholders (GMS).

"So that GKK's actions, aka KA, did not get the approval and approval of the government at that time," said Firli.

Karen's actions have cost the state around US$ 140 million or Rp. 2.1 trillion. The reason is that LNG's cargo purchased from US CCL LLC companies is not absorbed in the domestic market.

As a result, oversupply cargo, PT Pertamina finally made sales in the international market with a loss condition. In fact, this commodity has never entered Indonesia and was used as originally intended.

This is information about the LNG project that made Ahok examined by the KPK. Get news updates of other options only on VOI.ID.