JAKARTA - PT Kalimantan Jawa Gas (KJG), as an affiliate of PT PGN Tbk (PGAS), plans to sign the Memorandum of Understanding (MoU) with PT Bahtera Andalan Gas (BAND) regarding the Utilisation of Natural Gas Pipe Capacity. Through this cooperation, KJG will act as a transporter. Meanwhile, BAND, as a company engaged in the natural gas trading and industry, including CNG, will become the third potential shipper from KJG after PGN and Pertamina. The volume of gas utilisation is projected to reach 3-5 MMSCFD from Muriah Work Area.

BAND intends to utilise capacity of KJG’s pipes to support its business activities in Central and East Java, especially in distributing gas to BAND’s existing market from Kepodang Field. Previously, BAND’s existing market is supplied from Randugunting Work Field.

BAND distributes gas in the form of Compressed Natural Gas (CNG) directly to the industry and its end users.

“We hope that this partnership could be realised in the near future. We also highly support BAND’s plan to receive allocation for Kepodang Field. What is certain is that BAND does not need to worry, because until now, the production of Kepodang Field and other surrounding fields is still reliable. KJG’s pipe is located in a strategic position. Therefore, we hope that it will be utilised not only for electricity needs, but for other users around Central Java, as well,” R. Mohammad Edwin, Director of KJG, added on August 2.

KJG ensures the procurement of natural gas transporting pipe that will be utilised by BAND spanning ±200 km from Kepodang Field, Muriah Work Area. On the other side, BAND is currently filing a request for natural gas allocation to the Ministry of Energy and Mineral Resources as well as volunteering as gas buyer to Contractors of Cooperation Contract, SKK Migas, and other parties in Kepodang Field for the project.

Director of BAND, Pamiarto Saptosadewo, shares the same wish that with the abundance of new potential customers and increasing demands, KJG will be able to support this trend. Therefore, in the future, this cooperation will be advanced to gas transportation agreement.

BAND was established in 2018, and is a part of PT Super Energy Tbk (SURE). BAND is engaged in the natural gas downstreaming industry that manufactures CNG from CNG plant in Rembang, Central Java. The production capacity is 32.7 MMSCFD. BAND also has a direct allocation from the government for gas utilisation in Randugunting Well II managed by Pertamina Hulu Energi.

Meanwhile, KJG currently owns and operates a natural gas transporting facility in the form of a transmission pipe of ±200 km and a diameter of 14 inch, which connects the natural gas in Kepodang Field, Muriah Work Area, and KJG’s facility in Tambak Lorok ORF, Semarang, Central Java.

“We always maintain the performance of the pipe and supporting infrastructures for the gas distribution from Muriah Work Area. KJG, as a gas transporter, channels the gas from Kepodang Gas Well owned by Saka Energi Muriah to Tambak Lorok ORF of KJG. Then, it will be utilised to fulfil the gas needs, transporting it to Indonesia Power Semarang PGU of 10-25 BBTUD. We want the gas distribution to expand more. So, we are also ready to partner with various parties in its realisation,” Edwin explained. (PGAS/ZH)