PGN Will Soon Supply Gas to the Kendal Industrial Park

May 21, 2021

Friday, 21 May 2021 - Kawasan Industri Kendal (KIP) signed a Heads of Agreement (HoA) with PT Perusahaan Gas Negara Tbk (PGN), Subholding Gas PT Pertamina (Persero) to provide gas supply and development natural gas infrastructure.

Didik Purbadi as Director of PT. Kawasan Industri Kendal was present to sign the agreement with M. Haryo Yunianto (President Director of PT. PGN) and Pahala Nugraha Mansury (Deputy Minister of BUMN I).

According to Pahala Nugraha, this collaboration is expected to be able to encourage and restore the national economy from the Covid-19 pandemic. "The requirement to bring investment to Indonesia lies in addition to the ease of investing, it also lies in the efficiency in infrastructure and the costs required when joining an industrial estate. In addition, it requires certainty of electricity and energy availability for companies that will enter industrial estate, "he said.

As a follow-up to the HoA signing, Kendal Industrial Park will work with PGN to prepare a plan for the supply of natural gas and its supporting infrastructure. As for the distribution of natural gas into the Kendal Industrial Park, one of them will be sourced from Jambaran Tiung Biru which connects the pipeline network between Batang and Semarang.

PGN President Director M. Haryo Yunianto explained that in this collaboration, PGN will provide natural gas supply and its supporting infrastructure in the form of piped gas, Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) for industrial and commercial energy needs in Industrial Estates. "The HoA signing is part of an effort to provide certainty to potential investors on the guarantee of the availability of natural gas supplies. In addition, it is expected to increase the competitiveness of the investment climate in industrial areas," said Haryo.

Haryo continued that PGN is ready to support and cooperate with various parties so that infrastructure and natural gas supply in Central Java can be realized immediately. "The construction of the Gresik-Semarang gas transmission pipeline has been completed, hopefully this can accelerate the realization of the certainty of natural gas supply distribution. There is a plan to collaborate with the Regional Government of PGN and the Regional Government of Central Java regarding the provision of CNG and its supporting infrastructure, so the supply of natural gas in Central Java is more reliable" explained Haryo.

PGN is also completing the interconnection of the Gresem Pipe with the Java Kalimantan (Kalija) Pipe to optimize the distribution of natural gas in the industrial sector in the Kendal and Semarang areas. The finalization of the Gresem-Kalija pipeline interconnection will also increase the utilization of natural gas from the Kepodang Field, so that it is expected to strengthen the reliability of natural gas supply.

Didik Purbadi (Director of PT. Kawasan Industri Kendal) on the same occasion also expressed his enthusiasm and hopes for this natural gas distribution plan. According to him, the need for gas is very important for investors in the Kendal Industrial Park. In fact, the need for this gas continues to increase as the number of investors increases. He said, "Currently we have 70 investors who join with the total gas requirement reaching 10 MMcfd. Some of our investors belong to the 7 industrial sectors regulated in Presidential Decree No. 40/2016. Therefore, we hope, especially for investors who enter the 7 industrial sectors, they will receive the support of competitive gas prices from the government."