Jakarta – PT PGN Tbk’s First Subholding Gas Affiliation PT Pertagas Niaga (PTGN) continues to strengthen its role in Indonesia’s energy transition. This time through the cooperation agreement reached by PTGN with PT Industry Sawit Synergi (PT PSS) on Saturday (27/05).

Through this cooperation, PTGN will supply LNG needs to support PT PSS’s crude palm oil refinery (CPO) activities for five years. The project is targeted on stream in the second quarter of 2024 with a contract volume of 2,000 MMBTUD equivalent.

The agreement demonstrates the consistency and commitment of PTGN to continue to promote cleaner and more environmentally friendly energy utilization for industry. At the same time it is one of the concrete efforts of PTGN in supporting the energy transition and the Government of the Republic of Indonesia program towards net zero emissions (NZE) 2060.

PTGN President, Aminuddin, said: “PTGN continues to optimize the use of gas as a more environmentally friendly energy source for industry in Indonesia. At present, PTGN has supplied energy needs for industries from the islands of Sumatra, Java, Kalimantan, Bali, Sulawesi and East Indonesia. This is proof of PTGN’s commitment to support Indonesia towards NZE 2060.

Chow Yang Chung, Senior General Manager of Utility PT PSS, said: “The use of LNG as an alternative energy is a good choice while contributing to emissions reduction efforts.”

LNG or Liquified Natural Gas is a methane gas with a composition of 90% methano (CH4) that is dissolved at atmospheric pressure and temperature -163 degrees Celsius. Before the melting process, the gas must undergo a first purification process to eliminate the unintended content of compounds such as CO2, H2S, Hg, H2O and heavy hydrocarbons.

The process will reduce the volume of gas to 600 times smaller. This reduction makes LNG easier to transport in larger quantities. LNG is transported via ships to LNG terminals and stored in tanks at atmospheric pressure. LNG is then converted back into gas and channeled through the transmission system. LNG also has a lower carbon footprint compared to other energy sources.