PGN Signs LNG Supply Deal with West Papua BUMD to Strengthen Energy Security

January 10, 2025 | 04:22 pm

TEMPO.CO, Jakarta - PT Perusahaan Gas Negara Tbk (PGN), the gas sub-holding of the state-owned energy company Pertamina, has officially partnered with the Regional Owned Enterprise (BUMD) of West Papua to utilize the liquefied natural gas (LNG) allocation from PT Padoma Lirik Energy (PLE). 

PGN's commercial director, Ratih Esti Prihatini, announced that the company will tap into this LNG supply from the BP Tangguh Refinery.

"This partnership reflects PGN's commitment to sustainability by actively seeking alternative supply sources for regasified gas, especially amidst the challenges posed by pipeline gas supply conditions," Ratih explained in a disclosure on the Indonesia Stock Exchange website, quoted on Friday, January 10.

The LNG volume to be utilized is expected to meet PGN's demand of approximately 20 MMSCFD, or about 2 cargoes per year from the BP Tangguh Refinery in West Papua. This collaboration with West Papua's BUMD aims to ensure optimal use of the LNG allocation while adhering to current government regulations.

"This cooperation initiative is designed to leverage the gas allocation determined by the Ministry of Energy and Mineral Resources. We hope this process proceeds smoothly and benefits all parties involved," said Erix Ayatanoi, representing the governor of West Papua.

Meanwhile, T. Heriwansyah, the president director of PLE, stated that utilizing Tangguh's LNG allocation would address the supply needs for pipeline gas in several strategic regions. He noted that PGN would coordinate with stakeholders to enhance energy security and self-sufficiency as gas demand continues to rise.

"Our hope is that this LNG utilization by PGN will be successful. Following this, we will continue our coordination with the government," he added.

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