Jakarta (ANTARA) - State-run PT Perusahaan Gas Negara (PGN) Tbk, through PT Pertagas Niaga (PTGN), is distributing liquefied natural gas (LNG) to smelters in Southeast Sulawesi to support the government's mineral downstreaming policy.

PTGN has been distributing LNG from PT Kayan LNG Nusantara (Kayan) in North Kalimantan to Southeast Sulawesi since early this year with the help of 25 units of 40-feet-long isotank trucks as the mode of transportation.

The allocation of LNG from Kayan will support the development of mini LNG business for PGN as well as domestic businesses, said PGN sales and operations director Ratih Esti Prihatini in a statement issued in Jakarta on Monday.

This is because the project is the first small-scale LNG development in Indonesia. The acquisition of LNG was carried out after a series of trials were completed by the parties.

"Kayan LNG distribution proves PGN's beyond pipeline scheme can be commercialized. PGN Group's partnership with Kayan to monetize small-scale LNG allocation is expected to boost retail LNG in Indonesia, create a multiplier effect for end users, and boost economic growth," Prihatini stated.

Smelters are part of a downstream project whose implementation is being vigorously encouraged by the government.

"By distributing LNG to this smelter, PGN Group also plays a role in supporting the government's downstream program by using natural gas as a low-emission and environmentally friendly energy," she said.

The LNG is expected to not only be used as an energy source for industry and smelters, but also power plants and various other user segments.

The small-scale LNG breakthrough is expected to act as an infrastructure that supports the equitable use of natural gas.

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Translator: Yuni Arisandy Sinaga
Editor: Azis Kurmala
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