KIT Batang is expected to absorb workforce and increase national economic growthJakarta (ANTARA) - State-owned gas distribution company PT Perusahaan Gas Negara (PGN) started the development of infrastructure for natural gas distribution to the Batang Integrated Industrial Area (KIT Batang), Central Java, PGN noted in a statement here, Wednesday.
The development of infrastructure is a concrete implementation of providing clean energy for the industrial area and supporting the utilization of the Cirebon-Semarang transmission pipeline built by the government.
PT PGN (Tbk) is a gas subholding company of the state-owned oil and gas firm PT Pertamina (Persero).
The distribution pipeline would have a diameter of eight inches, with a length of 7.3 km, gauge pressure of 17 Barg, and flow capacity of 25 MMSCFD.
KIT Batang has the potential to absorb a maximum 24.8 MMSCFD of natural gas to supply 14 tenants.
PGN will supply natural gas for the area from PEPC Jambaran Tiung Biru (JTB) once the pipeline network and supporting infrastructure are ready to go on stream in 2023.
PGN Director of Infrastructure and Technology Achmad Muchtasyar led the first welding ceremony at the KIT Batang, on Wednesday, to mark the infrastructure development.
Other attendees at the ceremony were Assistant Deputy for Energy, Oil and Gas of the State Enterprises Ministry, Abdi Mustakim; representative from the Energy and Mineral Resources (ESDM) Ministry, Agung Kuswardono; Head of the Central Java ESDM Office Sujarwanto Dwiatmoko; and President Director of KIT Batang Ngurah Wirawan.
Mustakim said Indonesia had recorded significant economic growth amid the threat of global recession and impact of the COVID-19 pandemic.
KIT is a national strategic project that prioritizes natural gas as energy source.
According to Mustakim, the Gresik-Semarang (Gresem) pipeline is ready to deliver gas from JTB to KIT Batang. The ESDM Ministry is also preparing the Cirebon-Semarang (Cisem) pipeline for gas distribution.
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“KIT Batang is expected to absorb workforce and increase national economic growth,” he said.
Head of the Central Java ESDM Office Sujarwanto Dwiatmoko lauded the integration of the Gresik-Semarang and Cirebon-Semarang transmission pipelines, as a positive breakthrough for Central Java and the Batang KIT.
“The first welding is an important milestone to increase tenant confidence in KIT Batang. The need for environmental friendly energy is a request from investors, and Central Java is expected to become a gas hub to support the growth of industry-based economic growth,” he remarked.
Meanwhile, Agung Kuswardono said the Ministry of Energy and Mineral Resources had allocated Rp1 trillion for development of the transmission pipeline, while PGN would provide the distribution pipeline to customers.
“The development of natural gas infrastructure is a concrete manifestation of the commitment of the central and regional governments, state and private enterprises, as well as all stakeholders in joining hands, working together to start distributing clean, environmentally friendly energy, and providing sustainable energy for KIT Batang,” he remarked.
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Following the construction of the Cirebon-Semarang transmission pipeline, especially the Semarang-Batang section, Kuswardono said, it is necessary to construct a distribution pipeline to distribute gas to KIT Batang.
The construction is a form of PGN's endeavor and support for the’government in accelerating the development of downstream infrastructure, so that it can absorb gas supplies from various sources.
According to Kuswardono, the KIT Batang will be integrated with housing, health services, and the inter-factory supply chain.
Thus, PGN has the opportunity to develop natural gas infrastructure to serve housing and medium and retail businesses.
“PGN is ready to collaborate with various parties for the reliability of infrastructure and supply of natural gas in Central Java. Not only in Batang, but there are still many industrial areas in Central Java that have the potential to use natural gas," he said.
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Translator: Kelik Dewanto, Sri Haryati
Editor: Fardah Assegaf
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