PGN Distributes LNG to Smelter Customers in Southeast Sulawesi

Jakarta – Subholding Gas of PT Pertamina Persero, PT PGN Tbk, through PT Pertagas Niaga (“PTGN”), has started the distribution of LNG from PT Kayan LNG Nusantara (“Kayan”) to smelter customers located in Southeast Sulawesi. This LNG distribution from North Kalimantan is a realization of the LNG Sales and Purchase Agreement with Kayan. PTGN is using 25 units of 40 ft Isotanks as the transportation mode for LNG.

Ratih Esti Prihatini, Director of Sales and Operations at PGN, explained that the allocation of LNG from Kayan will support the development of PGN's mini LNG business and domestic initiatives. This project is the first small-scale LNG development in Indonesia. The LNG retrieval was carried out after a series of successful trials conducted by the parties involved.

“The distribution of LNG allocation from Kayan proves that PGN’s beyond pipeline scheme can be commercially realized. The partnership between PGN Group and Kayan in monetizing small-scale LNG allocation is expected to stimulate LNG retail in Indonesia, creating a multiplier effect for end users and fostering new economic growth in the surrounding areas,” said Ratih on January 7, 2024.

The smelter project is part of a downstream initiative that the government is actively promoting. Smelters can enhance the value of raw materials produced from mining in Indonesia. By supplying LNG to smelters, PGN Group aims to support the government's downstream program, using natural gas as a low-emission and environmentally friendly energy source.

Ratih hopes that areas suitable for LNG distribution will continue to grow. Furthermore, the utilization of LNG is expected to expand beyond industry and smelters, including applications for power generation and various other user segments.

Some regions in Indonesia are still not served by natural gas pipeline infrastructure. However, this small-scale LNG breakthrough is anticipated to serve as infrastructure that supports equitable natural gas usage, enabling communities in various island locations in Indonesia to access natural gas, thereby helping the government achieve its Net Zero Emission targets as planned.

Kembali Ke Beranda