PGN Signs PJB LNG Contract with Industrial Customers in Eastern Indonesia
Jakarta – In a significant development for the energy sector, PT PGN Tbk has officially signed a Liquefied Natural Gas (PJB LNG) contract with industrial customers in Eastern Indonesia, specifically the Cooperation Operation (KSO) of PT Indogawa Teknologi Indonesia and PT Siantar Tara Sejati.
The agreement marks a continuation of the Memorandum of Understanding related to the development of natural gas utilization in South Sulawesi. The signing took place on Monday (25/11/2024) in Jakarta, with Hedi Hedianto, General Manager Sales and Operation Region III PGN, Mohammad Mufti Amin, President Director of PT Indogawa Teknologi Indonesia, and Rusdi Ng, President Director of PT Siantar Tara Sejati, in attendance. Commercial Director of PGN, Ratih Esti Prihatini, also witnessed the event.
Expanding Market Reach
The collaboration utilizes LNG from the Simenggaris Working Area, North Kalimantan, through the facilities of PT Kayan LNG Nusantara, with a total maximum volume of 2,888,000 MMBTU. Ratih expressed the company’s commitment to expanding and strengthening its presence in Central and Eastern Indonesia, especially in Makassar.
“We hope Makassar can become a hub for the development of natural gas in Eastern Indonesia. The first quarter of 2025 will mark a significant milestone for PGN to further expand in this region,” Ratih added.
Promising Potential
PGN SOR 3 covers the regions of East and Central Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi, Maluku, and West Papua. As of September 30, 2024, PGN had 203,754 household customers, 431 small customers, and 605 commercial-industrial customers in this area, contributing approximately 31% of the total consolidated trading volume of PGN.
The LNG utilization collaboration has the potential to increase PGN’s trading volume, especially from the industrial sector in Eastern Indonesia managed by SOR 3. Mufti Amin and Rusdi Ng expressed their hopes that this partnership would be a stepping stone for further growth and continuity in gas distribution.
Positive Outlook
With a positive response from the industrial sector, PGN is optimistic about enhancing the accessibility of natural gas in Eastern Indonesia through beyond pipeline services (LNG and CNG), catering to the geographical conditions and needs of the region.
As we witness the energy sector’s evolution and the vital role of natural gas in powering industries and communities, partnerships like these pave the way for sustainable growth and development. Through collaborative efforts and innovative solutions, we can create a brighter and more efficient energy future for all. Let us continue to support initiatives that drive progress and enhance energy accessibility for a better tomorrow.
