Supports Industry & Electricity Competitiveness, Pertamina's Gas Subholding Agrees on 9 Gas Sales Agreements for the Sustainability of Natural Gas Supply in Sumatera – Java
Bali, December 1, 2021 - PT PGN Tbk as Pertamina Gas Subholding is committed to being a part of sustainable energy solutions. Therefore, Pertamina's Gas Subholding participated in The 2nd International Convention on Indonesian Upstream Oil and Gas 2021 event organized by SKK Migas. At IOG 2021, Pertamina's Gas Subholding signed a Gas Sales Agreement (PJBG) and Letter of Agreement (LoA) with upstream producers to support industrial competitiveness and maintain the resilience of the natural gas supply.
Pertamina's Gas Subholding (PGN, Pertamina Gas, and PertagasNiaga) and PT Pertamina Hulu Energi Jambi Merang (PHE Jambi Merang) signed the GSA, with a total volume of 34.8 BBTUD. Natural gas from PHE Jambi Merang will be used for customer needs in the oil and gas lifting sector, refineries, electricity, and industry in Central Sumatera, Riau Islands, South Sumatera, and West Java. The GSA was signed by Director of PHE Jambi Merang Jaffee Arizon, Director of Strategy and Business Development of PGN Heru Setiawan, President Director of Pertagas Wiko Migantoro, and President Director of Pertagas Niaga Aminuddin.
Furthermore, PGN and Saka Energi Muriah Limited signed a PJBG to fulfill the needs of customers in the electricity and industrial sectors in the Java region with a volume of 10 – 12 BBTUD from the Muriah Working Area.
Between PGN and Conoco Phillips Grissik Limited (CPGL) and Medco Energi Madura Offshore Pty Ltd (Medco) also signed an LoA for the implementation of certain natural gas prices (HGBT) based on the Minister of Energy and Mineral Resources Decrees 135K/2021 and 134K/2021.
The details of the LoA document between PGN and its upstream producer partners signed are as follows:
1. The LoA between PGN and CPGL SSWJ for the implementation of Kepmen 134 and 135 in South Sumatera and West Java of 343.92 BBTUD.
2. The LoA between PGN and CPGL Batam I for the implementation of Kepmen 134 and 135 in the Batam area of 19.41 BBTUD.
3. The LoA between PGN and CPGL Batam III for the implementation of Kepmen 134 of 33 BBTUD.
4. The LoA between PGN and CPGL Dumai for the implementation of Kepmen 134 in Central Sumatera of 8.37 BBTUD.
5. The LoA between PGN and CPGL Dumai RU for the implementation of Kepmen 135 in the central part of Sumatera and Batam of 12.5 BBTUD.
6. The LoA between PGN and Medco Maleo for the implementation of Kepmen 134 in East Java of 15 BBTUD.
7. The LoA between PGN and Medco Meliwis for the implementation of Kepmen 134 in East Java of 9.67 BBTUD.
“After the transformation, the Gas Subholding has integrated infrastructure from northern Sumatera to East Java so that the distribution of natural gas to various segments is more flexible and reliable. From this forum, we hope that the agreed volume of natural gas can be monetized optimally which will be utilized in the household sector, industry, to power plants that can create a multiplier effect for the national economy," said Director of Strategy and Business Development of PGN, Heru Setiawan.
"We are also grateful for the support from the government including the Ministry of Energy and Mineral Resources, the Director-General of Oil and Gas, and SKK Migas, the demand for natural gas is one of the priorities of the upstream oil and gas industry. Hopefully, it can be a joint effort to advance investment in the upstream oil and gas sector and Indonesia's economic development," stated Heru.**