PGN Signs LNG PJB with Industrial Customers in Eastern Indonesia

Jakarta – PT PGN Tbk has officially signed a Liquefied Natural Gas Sales and Purchase Agreement (PJB LNG) with industrial customers in Eastern Indonesia, namely the Joint Operations (KSO) of PT Indogawa Teknologi Indonesia and PT Siantar Tara Sejati. This agreement is a continuation of the Memorandum of Understanding regarding the development of natural gas utilization in South Sulawesi.

The signing took place on Monday (11/25/2024) in Jakarta by Hedi Hedianto, General Manager of Sales and Operation Region III PGN, and Mohammad Mufti Amin, President Director of PT Indogawa Teknologi Indonesia and Rusdi Ng as President Director of PT Siantar Tara Sejati. PGN's Commercial Director, Ratih Esti Prihatini, was also present to witness the event.

This 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.

"PGN continues to expand and strengthen the market in central and eastern Indonesia," said Ratih. He explained that PGN continues to seek LNG supplies to support the use of natural gas for the industrial sector, especially in Makassar. "We hope that Makassar can become a center for natural gas development in Eastern Indonesia. The first quarter of 2025 will be the starting point for PGN to further develop in this region," he added.

PGN SOR 3 covers the areas of Eastern and Central Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi, Maluku to West Papua. The number of PGN customers in this region is recorded at 203,754 in the household sector, 431 small customers and 605 commercial-industrial customers, with a trade volume contribution of around 31% of PGN's total consolidated trade volume as of September 30, 2024. So this LNG utilization cooperation has the potential to increase PGN's trade volume, especially from the industrial sector in Eastern Indonesia which is managed by SOR 3.

Meanwhile, Mohammad Mufti Amin and Rusdi Ng expressed their hopes that this cooperation could be a joint step to spread their wings. "We also hope to get continuity for gas distribution," said Mufti Amin.

With a positive response from the industrial sector, PGN is optimistic about increasing the accessibility of natural gas in Eastern Indonesia through beyond pipeline services (LNG and CNG), which are in accordance with the geographical conditions and needs of the region.