ConocoPhillips Indonesia Extends Natural Gas Supply Contracts to PGN

By : Hariyanto And Aldo Bella Putra | Friday, September 28 2018 - 16:30 IWST

ConocoPhillips (Foto Ist)
ConocoPhillips (Foto Ist)

INDUSTRY.co.id - Jakarta - ConocoPhillips Indonesia Grissik Ltd (CPGL) has extended the contract of natural gas supply of 30 BBTUD to PT Perusahaan Gas Negara Tbk.

This supply will be fully used by PGN to supply natural gas to customers. Ranging from industry, commercial, to households and SPBG in Batam, Riau Islands (Kepri).

PGN's Corporate Secretary, Rachmat Hutama said, the natural gas supply from CPGL amounting to 30 BBTUD was based on the ESDM Minister's Decree No. 7896/13 / DJM.E / 2019 issued on September 10, 2018.

"In the letter, ConocoPhillips supplies 40 BBTUD to PLN Batam and IPP for power plants in Batam, while PGN gets a supply of 30 BBTUD for industrial, commercial, MSME customers up to households and SPBG in Batam," Rachmat said Friday (28 / 9/2018).

Previously, the supply of natural gas from ConocoPhillips was fully provided to PGN to meet the needs of natural gas in Batam including the electricity sector.

Then, upon PLN's request to the Minister of Energy and Mineral Resources, it was decided that from the first week of October 2018, gas supply from Conocophillips of 40 BBTUD for the electricity sector was given directly to PLN without going through PGN's natural gas pipeline infrastructure.

"With the reliability and commitment of PGN's natural gas infrastructure development, especially in Batam, industry and other PGN customers in the Batam area will get a guarantee of continuity of natural gas supply through a reliable gas pipeline network infrastructure, because PGN is committed to absorbing all gas supplies of 30 BBTUD from ConocoPhillips, "He explained.

Rachmat added, currently PGN has supplied natural gas to 4,842 customers in the Batam area. The customer consists of 93 industrial and commercial, 29 small customers, 4,720 household customers.

On the other hand, the operation of the Gas Fueling Station (SPBG) operated by PGN's subsidiary, PT Gagas Energi Indonesia in Batam is a tangible form of PGN's alignment to increase the economy in Batam by providing natural gas.

Until now, the natural gas pipeline owned and operated by PGN in Batam is 223.57 km. In addition to jargas, PGN has also built a natural gas distribution pipeline in the Nagoya area of ​​18.3 km.

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