PT Kalimantan Jawa Gas (KJG), a joint venture between PGN and Bakrie and Brothers, has signed a cooperation agreement with AWE (Satria) NZ Ltd, a New Zealand-based oil and exploration company, for the development of the Lengo gas field located in the waters around Bulu, East Java.
The Memorandum of Understanding (MoU) was signed by KJG Director R. Mohamad Edwin and AWE (Satria) NZ Ltd General Manager Hendra Jaya.
KJG, as the owner of the gas transmission pipeline in the Java Sea, will transport gas from the Lengo field to the Onshore Receiving Facility (ORF) owned by KJG in Semarang.
AWE (Satria) NZ Ltd, as the non-operator contractor, will collaborate with the Bulu PSC Operator for the commercialization of the Lengo field. This partnership also provides an opportunity for the PGN Group to participate in the gas field’s development.
“KJG, as a gas transportation company with approximately 10 years of experience, already has the capability to manage and operate gas pipelines. We are optimistic that this collaboration will develop smoothly and quickly, and we hope it will be realized soon,” said Edwin on October 24, 2023.
With the growing business partnership, Edwin hopes that more companies will collaborate with KJG in the future to support the provision of clean and sustainable energy, especially for the Semarang and Central Java regions.
KJG, as a gas transportation company, owns and operates a ±200-kilometer, 14-inch diameter natural gas transmission pipeline infrastructure that connects the gas source from the Kepodang Field in the Muriah Working Area to KJG’s ORF facility in Tambak Lorok, Semarang, Central Java.
Currently, KJG’s role is to transport gas to meet the electricity sector’s needs, serving PT Indonesia Power and supplying gas for industries in Central Java, with a total gas distribution of 10-25 billion British Thermal Units per day (BBTUD).
Furthermore, KJG is involved in meeting the gas requirements from the Kepodang gas wells owned by Saka Energi Muriah to KJG’s Tambak Lorok ORF, which is utilized to meet the needs of Compressed Natural Gas (CNG) stations, PGN’s distribution in the electricity sector, industries, commercial entities, and households, amounting to 12 million standard cubic feet per day (MMSCFD).
Since 2022, KJG’s pipeline has also been delivering gas to CNG stations in Central and East Java, with volumes reaching 4 MMSCF, as per the Ministry of Energy and Mineral Resources Decree No. 9K of 2022.
