Boosting Natural Gas Utilization in Central Java, PGN Distributes 8 BBTUD to Glass Manufacturer in KIT Batang

Batang – PT PGN Tbk has successfully carried out the first gas delivery to PT KCC Glass Indonesia, a flat glass producer located in the Batang Integrated Industrial Zone (KITB). The planned gas utilization at the plant is expected to reach 8 BBTUD.

A Gas Sale and Purchase Agreement (PJBG) was signed between KCC Glass Indonesia and PGN in February 2024, with a gradual increase in gas supply planned. The gas delivery coincided with a visit from the Minister of Energy and Mineral Resources and the Head of SKK Migas to KIT Batang on Friday, July 26, 2024.

PGN has built a 5-kilometer-long, 8-inch diameter gas distribution infrastructure within KIT Batang, using gas supplied from the PEPC Jambaran Tiung Biru. This gas delivery to KCC Glass marks the increased utilization of the Cisem Phase 1 transmission pipeline and the domestic wells in the JTB Field.

“PGN will continue to maintain its commitment to providing a stable gas supply, which is key to KCC Glass's operations. The reliability of the integrated infrastructure is also continuously ensured to guarantee the safe and smooth delivery of gas, enabling PGN’s natural gas to offer economic benefits to the industry,” said PGN President Director Arief Setiawan Handoko.

PGN is accelerating the utilization of natural gas in Central Java and East Java. The integration of the Gresem and Cisem 1 pipelines will allow PGN to expand its developments for end-users. The infrastructure integration has boosted the natural gas absorption in Central Java from 48 BBTUD to 60-70 BBTUD. Previously, PGN had been supplying natural gas in Central Java using Compressed Natural Gas (CNG) due to the lack of pipeline infrastructure in the region.

“This infrastructure integration is the result of collaboration between the government and business entities working together to increase the utilization of natural gas in Central and East Java. We hope the demand will continue to grow, and PGN will accelerate its gas distribution,” said Arief.

He continued, stating that the fulfillment of natural gas energy in KIT Batang is in line with PGN’s response to the government’s direction regarding the provision of gas infrastructure in the industrial zone. This industrial area is positioned as a model for the development of other industrial zones. PGN fully supports the use of the Cisem I pipeline, which is connected to KIT Batang.

Since the natural gas flow began in KIT Batang at the end of 2023, PGN has already supplied gas to one existing customer, PT Rumah Keramik Indonesia, which uses 1 BBTUD of gas. Efforts to add more natural gas customers in KIT Batang are ongoing, with plans to supply gas to a medical equipment manufacturer in the near future.

“PGN is ready to collaborate with various parties to ensure infrastructure reliability and natural gas supply in Central Java. It is a great pride for PGN to be an energy provider, supporting investment growth and the industrial competitiveness of KIT Batang and other industrial zones,” concluded Arief.

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