Jakarta – Subholding Gas Pertamina, PT PGN Tbk, and PT Pertagas Niaga (PTGN) as PGN parties accepted the LNG Sales and Purchase Agreement (PJB LNG) with PT Kayan LNG Nusantara. In this LNG PJB, PGN Group buys LNG supply of 3-5 BBTUD for LNG Retail needs in Kalimantan and Eastern Indonesia, and is expected to optimize the LNG market and use natural gas in areas that have not been reached by gas pipeline infrastructure.

The PJB LNG signing between PGN Group and PT Kayan LNG Nusantara was carried out by PGN's Director of Strategy and Business Development Heru Setiawan, President Director of PT Pertagas Niaga Aminuddin, and PT Kayan LNG Nusantara President Director Antony Lesmana.

“The LNG allocation from Kayan is the kick off for LNG purchases at PGN as a whole to support the LNG trading business. In operations and sales, Pertagas Niaga and PGN Gagas are assigned to deliver LNG for domestic needs. In addition, PGN is also building mini LNG liquefaction in several areas," said PGN President Director, M. Haryo Yunianto, (21/10/2022).

Haryo continued, PGN and Kayan will carry out joint marketing for the allocation of LNG from Kayan and optimize the LNG Portfolio cargo for the international market.

PGN's Director of Strategy and Business Development Heru Setiawan added that to meet the needs of natural gas in Kalimantan and eastern Indonesia requires a delivery scheme outside the pipeline. Natural gas will be distributed by non-pipeline transportation mode because it is not yet connected to the gas pipeline network.

"PGN has initiated the use of natural gas in liquid form, namely Liquefied Natural Gas (LNG), so that it can be distributed to end users,” explained Heru.

PGN needs LNG supply support, so PGN invites business entities that can provide LNG, one of which is PT Kayan LNG Nusantara. Mastery in managing the natural gas market makes PGN confident in driving LNG retail.

“The development of retail LNG is one of PGN's value creations starting in 2022. We view that the need for energy conversion to natural gas in Kalimantan and Eastern Indonesia is very large, so this is also a challenge for PGN. The areas that have been reached by LNG are expected to grow later. LNG can be used as energy for industry, smelters, power plants, and households," said Heru.

Antony Lesmana as President Director of PT Kayan LNG Nusantara said that Kayan has always been encouraged to build a mini LNG plant by utilizing existing gas sources.

“In this ecosystem, PGN is an important part and as an anchor customer. This PJB LNG is the first collaboration for the mini LNG business and the LNG market is large enough to be marketed together so that it will benefit both parties," said Antony.

Heru emphasized that PGN is ready to invest in retail LNG development and is open to cooperation with other business entities to distribute LNG to end users so that the acceleration of the LNG business can be realized. Retail LNG optimization is also one of PGN's ways to fill the energy transition.