Gas Subholding Pertamina Supply LNG to Bontang Industry

Bontang, 21 April 2022 – Pertamina Gas Subholding continues to expand natural gas utilization through the beyond pipeline infrastructure in Bontang, East Kalimantan. Through PT Pertagas Niaga (PTGN), Gas Subholding supplies the first LNG to industries in Bontang, particularly to PT Energi Unggul Persada (EUP) engaging in palm oil processing.

EUP uses 462 MMBTUD of LNG for factory boiler needs and will increase according to the plant's expansion plan. LNG is supplied from Pertamina Gas's Filling Station Plant 26 in the PT Badak LNG area then delivered using ISOtank trucks.

"This is a proud step because finally, the industry in Bontang utilizes LNG processed from its area," President Director of Pertagas Niaga, Aminuddin, said (20/04/2022).

EUP use of LNG is expected to be followed by other industries. Therefore clean energy use will be more extensive. "We feel there is a cost-saving with LNG. We are happy to have a role as an industry that switches to environmentally friendly energy," Hendri Chandra, Factory Manager of PT EUP, explained.

Since 1972, Bontang City is known to had contributed greatly to the LNG industry. LNG strengthens the awareness of environmentally friendly energy use, especially in industry.

Pertagas Niaga has been a pioneer in LNG trading to supply industrial factories, commercial and public facilities, as well as small and medium industries such as hotels, hospitals, restaurants, and cafes since 2015, with an average volume of 12,000 MMBTUD supplied from the Bontang Filling Station.

LNG is one solution to meet energy needs for areas not reached by gas pipeline infrastructure, one of which is Eastern Indonesia. Apart from a transition to green energy use, LNG utilization is also part of the effort to realize domestic energy distribution and independence.**