PGN Supplies Natural Gas to Glass Industry in KIT Batang

Jakarta – PT PGN Tbk, part of Pertamina's Subholding Gas, has begun supplying natural gas to KCC Glass Indonesia's factory, which produces flat glass, located in the Kawasan Industri Terpadu Batang (KIT Batang). On Friday, February 16, 2024, both parties signed a Gas Sale and Purchase Agreement (PJBG), with plans to gradually increase the gas supply.

PGN has completed the natural gas distribution infrastructure within the industrial area, stretching 5 kilometers from the Cisem Transmission Pipeline Phase I. The gas supply to the industrial area began in December 2023. The gas supplied to KCC Glass comes from the PEPC Jambaran Tiung Biru, which will enhance the utilization of the Cisem Transmission Pipeline Phase 1.

“The government fully supports energy access through the Cisem Pipeline as part of the National Strategic Project. In the face of global challenges, PGN plays a critical role in providing a stable gas supply and infrastructure to KCC Glass in KIT Batang,” said Mustafid Gunawan, Director of the Oil and Gas Program at the Ministry of Energy and Mineral Resources, during his speech.

Stable natural gas supply is crucial for the glass industry, particularly for KCC Glass. The availability of this energy source is expected to support KCC Glass's business growth and contribute to the advancement of Indonesia's glass industry, which has had a long-standing relationship with PGN.

“We appreciate KCC Glass for choosing PGN as their business partner for their production activities. KCC Glass requires reliable and long-term gas supplies, which presents a potential captive market for us. We are ready with the necessary infrastructure,” said Ratih Esti Prihatini, Director of Sales & Operations at PGN.

The gas supply to KCC Glass is a point of pride for PGN, as it contributes to the development of industrial investment in Central Java. PGN has also completed the necessary business licenses for gas distribution in Batang Regency.

“PGN is ready to support industrial growth in Central Java. If KCC Glass and other industries can operate optimally, it will significantly add value to the regional and even national economy. We ensure the reliability of the gas infrastructure to guarantee the availability of environmentally friendly energy and attract more investors,” Ratih continued.

KCC Glass Indonesia’s President Director, John O. Byun, expressed excitement about the PJBG signing with PGN, which marks the beginning of operations in KIT Batang. He emphasized that KCC Glass is now more confident in the continuous flow of gas from PGN, which aligns with the company’s investment goals to produce high-quality products in Indonesia.

In addition to KCC Glass, PGN has also been supplying gas to PT Rumah Keramik Indonesia since February 6, 2024. PGN hopes that the natural gas infrastructure in KIT Batang will enhance its presence in Central Java and provide a sustainable energy source for industries in the region.

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