PT Citra Nusantara Gemilang (CGAS) is set to collaborate with PT GT Ladang Teknik and Jianyang Greenfir New Energy Equipment Co Ltd (GreenFir) to construct a 1.5 million standard cubic feet per day (MMSCFD) Liquefied Natural Gas (LNG) Station.
The company aims to invest IDR 161.5 billion (US$ 10.3 million) in this venture, marking a strategic move to boost CGAS’s revenue and profits.
The groundbreaking ceremony for the LNG Station, with a capacity of 1.5 MMSCFD, will take place in the first quarter of 2024 at Galian Field Tambun Zone 7 Regional 2 in Pakis, Karawang, West Java.
“The investment for the construction of this 1.5 MMSCFD LNG Station amounts to IDR 161.5 billion,” stated Andika Purwonugroho, CEO of Citra Nusantara Gemilang, on February 23, 2024.
Andika envisions that, post-operationalization, the LNG Station’s sales are projected to generate approximately USD 8.7 million or around IDR 135 billion per year in the first year.
Furthermore, Andika sets ambitious targets for CGAS in 2024, expecting a 76.4 percent year-on-year surge in revenue to reach approximately IDR 658 billion.
The net profit of CGAS is projected to witness a remarkable 200.8 percent annual increase, reaching approximately IDR 36.7 billion in 2024. CGAS plans to allocate a capital expenditure of IDR 230 billion in 2024.
“The performance improvement of CGAS this year also involves several Compressed Natural Gas (CNG) Station projects in Grobogan, Central Java; Manyar, East Java; and Majalengka, West Java,” added Andika.
The sales volume for the entire year is estimated to reach 82 million standard cubic meters (Sm3), reflecting an 81.3 percent increase compared to the anticipated 45.2 million Sm3 sales volume in 2023.
In 2023, the company recorded a profit growth of IDR 12.2 billion, prompting CGAS to distribute dividends to shareholders, amounting to 30 percent of the net profit.
CGAS officially debuted on the Indonesia Stock Exchange (BEI) through an initial public offering (IPO) on January 8, 2024.
As the second issuer in 2024 and the 905th on BEI, the IPO proceeds of approximately IDR 179 billion will be utilized for the development of the LNG Station in Galian Field Tambun Zone 7 Regional 2, covering approximately 90 percent of the capital expenditure in 2024.
