**Supply Agreement: PGN Signs MoU for LNG Supply from KMJ**
Jakarta – In a significant move, PT PGN Tbk (“PGN”) as the Gas Subholding of Pertamina signed a Memorandum of Understanding (“MoU”) committing to the supply of Liquefied Natural Gas (“LNG”) from domestic sources. This commitment was secured from PT Karya Mineral Jaya (“KMJ”), with its production source being the LNG Bunyu Project located in WK Nunukan.
The MoU was signed on Tuesday (23/01/2024) at the PGN Headquarters by Rosa Permata Sari, the Director of Strategy and Business Development at PGN, and Iriawan Yuliato, the President Director of KMJ. The future forecasts by PGN indicate an increasing volume of LNG in the gas supply mix. This comes as a response to the declining pipeline gas supply volumes from various producers.
**PGN’s Growing Interest in LNG Supply**
Looking ahead, the production of LNG by KMJ is expected to commence flowing in 2028 with a planned capacity of approximately 60 MMSCFD. PGN stands out as a potential buyer interested in acquiring the production volume from the plant. Additionally, PGN and KMJ have agreed to explore other opportunities for cooperation in the participation of infrastructure development projects related to LNG.
**The Importance of Reliable Gas Supply**
Rosa Permata Sari, the Director of Strategy and Business Development at PGN, emphasized the need for a reliable gas supply from upstream gas suppliers in Indonesia to be distributed through PGN’s transmission and distribution gas pipeline network. The latest domestic gas balance projections in Indonesia show a decline in natural gas production since 2024. This situation necessitates the need for domestic LNG supply, one of which will be sourced from WK Nunukan through the LNG Bunyu Project.
**Optimism for Future Partnerships**
Both PGN and KMJ are optimistic about the potential for continued collaboration in technology acquisition and infrastructure development in the gas sector. Given PGN’s established presence in the natural gas business ecosystem, communication and support for KMJ’s growth within this ecosystem are expected to be seamless.
**Commitment to Reliability and Development**
PGN, as the Gas Subholding, remains committed to ensuring the reliability of gas supply to customers through both natural gas and LNG sources. Consistency is key in developing gas infrastructure, including LNG, to support PGN’s future business endeavors.
As we witness this significant milestone in the gas supply sector, one can’t help but wonder about the intricate web of partnerships and negotiations that go into securing a reliable energy source. It’s fascinating to see how companies like PGN and KMJ navigate the complex landscape of energy supply to meet the growing demands of modern society. This collaboration not only benefits both parties but also contributes to the larger goal of sustainable energy development. It’s a reminder that behind every flip of the switch or turn of the gas knob, there are dedicated individuals working tirelessly to ensure a seamless and uninterrupted energy supply for all.
