Jakarta - Pertamina Group Gas Subholding in this case PT PGN Tbk and PT Pertagas Niaga signed a Gas Sale and Purchase Agreement (KB) with Husky-CNOOC Madura Limited (HCML) to use gas supply from the development of the MDA-MBH-MDK (3M) field by HCML in order to improve the reliability of natural gas supply in East Java, Central Java, and surrounding areas. The 3M field is planned to start production in the third week of October 2022.

PGN welcomes HCML in developing this field with a plan to distribute 5-25 MMSCFD. The distribution of gas from the 3M Field HCML is expected to meet the gas needs of customers in East Java, while at the same time increasing the reliability of PGN's services to natural gas users in East Java, Central Java, and the surrounding areas.

“The cooperation is expected to provide joint value creation and PGN Group can immediately start its operations. The market is not only in East Java, but all over the world. Hopefully we can reach this opportunity and we will do some technology and market developments so that existing sources can be supplied throughout the world," said PT PGN Tbk President Director M. Haryo Yunianto at the KB signing ceremony with HCML, (21/10/2022). ).

At the same event, PGN's Director of Strategy and Business Development Heru Setiawan stated that in this Mutual Agreement, the Subholding Gas Group became a multi-buyer and was ready to support HCML in the utilization of natural gas in the 3M Field by distributing natural gas to customers in East Java and Central Java. What was done today is an important and significant step in the effort to distribute natural gas for Indonesia.

PGN and HCML have also collaborated in distributing natural gas from the BD Field in East Java to fulfill natural gas for PGN customers in East Java since 2017.

"This collaboration can certainly increase the reliability of natural gas sources so that efforts to accelerate PGN's use of natural gas are not only in Central Java and East Java without worrying about supply shortages," said Heru.

“PTGN's collaboration as part of the Gas Subholding with HCML adds to our optimism to increase our contribution to meeting gas needs, especially in the energy transition era. This is in line with the shared commitment to create equitable distribution and security of environmentally friendly energy in Indonesia,” added Bondan Christiandinata as Finance & General Affairs Director of Pertagas Niaga.

HCML Executive Manager Wahyudin Sunarya also welcomed the agreement to utilize the 3M Field with PGN. According to him, currently the oil and gas sector is in good momentum for investment and the field economy is very good for redevelopment.

"We see PGN as a strategic partner and in our first field, the BD Field, PGN has used it. Today is a milestone, gas from HCML - 3M Field can be distributed to PGN. Hopefully this collaboration will last and go international because HCML is located all over the world, so it can be an opportunity for PGN to go international,” said Wahyudin.

“In the future, PGN and HCML will continue to cooperate in the utilization of the HCML Field development in East Java. PGN hopes that the reliability of gas supply can be maintained and the potential for natural gas can come from other supplies in Indonesia," concluded Heru.