Badak LNG Encourages Gas Pipe Construction From Refinery In Bontang To IKN

LNG (photo: dock. Antara)

JAKARTA - PT Badak NGL or known as Badak LNG encourages the construction of a gas pipeline from the Badak refinery in Bontang, East Kalimantan, to the State Capital (IKN) to cut transportation costs.

Director and COO of PT Badak NGL Teten Hadi Rustendi said the installation of gas pipelines is estimated at 320 kilometers. From these pipes, it can also be connected to other industries that need LNG or liquefied natural gas.

"From here, encourage IKN, before entering IKN, we can enter it into the Balikpapan RDMP. Then the road that is traversed by the pipe, can build an industry, it will only be delayed later," said Teten quoting Antara.

Teten said that the construction of the gas pipeline is also in line with President Joko Widodo's directives for the use of clean energy at IKN.

Badak LNG also hopes that the plan can be included in the National Strategic Project (PSN), so that it can get a lot of funding sources.

Currently, Badak LNG also plans to build an LNG Hub, LPG Hub and regasification. According to Teten, when everything has been formed and running, it can function as a Regular Alternative Emergency (RAE).

"For example, in Sulawesi, Papua lacks gas, Badak (hidak Refinery) has an airport, we cooperate with Pelita (Pelita Air), filled tubes here, 3 kilograms 12 kilograms, fly to Papua. Here the complete RAE can pass by sea, land, can air. The only one in Indonesia RAE is this big," said Teten.

Badak LNG is ready to expand its business, one of which is the provision of LNG storage services (LNG Bunkering). With the storage services, the Badak refinery facility in Bontang, East Kalimantan, can still operate without dependence on gas producers.

The liquefied natural gas company is also preparing to face an increase in gas demand in line with the discovery of gas reserves in Indonesia in the last ten years. Badak has prepared a reactivation of two to three refineries that are currently resting.

Furthermore, Badak management has moved in preparing itself for increased infrastructure utilization at the Bontang LNG refinery, for example initiating business cooperation with Pertamina Group companies and outside Pertamina Group to utilize refinery infrastructure, either as offtaker and or investor.