This initiative can strengthen Indonesia's position on international maritime routes and become a new opportunity for the maritime industry.
Jakarta (ANTARA) - State-owned gas transmitter and distributor PT PGN Tbk is ready to realize the first liquefied natural gas bunkering (LNG bunkering) development project in Indonesia.

The project is located at Bontang LNG Terminal in East Kalimantan, PGN's Infrastructure and Technology Director Achmad Muchtasyar said in a statement here on Monday.

PGN is a gas sub-holding of state-own energy firm PT Pertamina and provides LNG as fuel for domestic and international ships, with a demand of up to 0.7 million tons per year (MTPA) for 10 years.

Muchtasyar said the project is a follow-up to the LNG development cooperation between Pertamina Group and other partners.

PGN has completed a front-end engineering design (FEED) study and has submitted it to state-owned LNG company PT Badak NGL for the next process, including the finalization of commercial aspects, preparation for procurement, and processing of related permits.

"This initiative can strengthen Indonesia's position on international maritime routes and become a new opportunity for the maritime industry. LNG bunkering in Bontang has a competitive advantage because it is on the Australia-East Asia ship route," he said.

LNG bunkering could also contribute to the modernization of LNG management and increase the economic value of natural gas in Indonesia, he added.

"We welcome the collaboration with PGN. God willing, PT Badak NGL and PGN will both benefit from this collaboration. This is also in line with the direction from SPPU (department of strategic, portfolio and business development) Pertamina to build synergy among companies within Pertamina Group," President Director and CEO of PT Badak NGL Gema Iriandus Pahalawan said.

LNG bunkering refers to the storage and distribution of LNG as ship fuel using direct berthing and ship-to-ship transfers.

The use of LNG as fuel for ships is part of the compressed natural gas (CNG) conversion program for the maritime sector, as stated in the Grand Strategy of National Energy (GSEN).

For domestic needs, LNG bunkering of Bontang Terminal could also support LNG gasification for electricity in central and eastern Indonesia, as well as provide adequate infrastructure for the distribution of LNG in Kalimantan and its surroundings.

The increasingly high demand for clean energy has also encouraged PGN to increase its LNG business expansion, as the fuel is more environment-friendly, on a large and small scale, both domestically and internationally.

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Translator: Kelik Dewanto, Sri Haryati
Editor: Rahmad Nasution
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