Tuesday, 18 June 2019 | 22:17 WIB

PGN Secures Gas Supply of 20.3 BBTUD from Santos

PGN Secures Gas Supply of 20.3 BBTUD from Santos (illustration: pgn)

JAKARTA, NNC - State-owned gas company PT Perusahaan Gas Negara Tbk (PGN) has signed a Gas Sale and Purchase Agreement with Santos Pty Ltd which manages the Meliwis (Madura Offshore) field. This additional supply will further strengthen PGN's gas supply for customers and the community, especially in the East Java region.

PGN's Commercial Director, Danny Praditya, revealed that the gas sales and purchase agreement with Santos will strengthen and expand PGN's gas service coverage, especially for the East Java region, which is one of the industrial centers with a dense household population.

Therefore, PGN's presence will be important and vital in meeting energy needs in the region.

The source of gas supply in the PJBG comes from the Seller Working Area from Meliwis Field.

The total daily contract amounts to 20.3 Bbtud with a contract period from 2020 to August 2023. The gas distribution will use East Java Gas Pipeline and is a synergy of the Gas Sub Holding with Pertagas.

"In other words, price and supply stability will greatly help PGN realize the ideals of national energy security in order to advance the people's economy," Danny said.

As a Gas Sub-Holding, PGN always strives to work extra so that financial performance is maintained, so that people can enjoy energy both efficiently and environmentally friendly.

During the period January-October 2018, PGN distributed 828.98 million cubic feet of gas per day (MMscfd) with details, throughout the third quarter of 2018 the volume of gas distribution was 800.10 MMscfd and the volume of natural gas transmission was 28.88 MMscfd .

PGN, which is now under the auspices of the BUMN Oil and Gas Holding, will jointly with PT Pertamina (Persero) as the holding company of Oil and Gas BUMN Holdings and Pertagas as PGN's subsidiaries, to make improvements and strengthen business networks.

As of the third quarter of 2018, PGN's gas pipeline infrastructure has expanded more than 35.75 km and currently reaches more than 7,516.70 km, equivalent to 80% of the national downstream natural gas pipeline.

From this infrastructure, PGN has distributed natural gas to 1,739 customers in the manufacturing and power generation industries, 1,984 commercial customers (hotels, restaurants, hospitals) and Small and Medium Enterprises (SMEs), and 177,710 household customers built with PGN investments.

PGN's natural gas customers are spread in various regions ranging from North Sumatra, Riau Islands, Riau, South Sumatra, Lampung, DKI Jakarta, West Java, Banten, Central Java, East Java, North Kalimantan and Sorong, West Papua.

"With these records, if PGN still needed assistance and cooperation from all parties. Including, this time is expected to come from Santos Pty Ltd, "Danny added.