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OIL AND GAS - JAKARTA. PT Perusahaan Gas Negara Tbk (PGN), a state-owned gas company, has agreed to supply 9.49 billion British thermal units per day (BBtud) of natural gas to PT Freeport Indonesia's (PTFI) copper smelter in Manyar, Gresik.
The natural gas supply to PT Freeport Indonesia is part of a long-term contract established under a Gas Sale and Purchase Agreement (PJBG).
PGN's Director of Strategy and Business Development, Rosa Permata Sari, stated that PGN is committed to maintaining service performance by providing adequate gas infrastructure and ensuring a stable supply so that the added value of natural gas can be optimally absorbed by customers.
"As a gas subholding, we are always supportive of the government's efforts to advance the national industry. This collaboration is significant for us because PT Freeport Indonesia is a consumer with a large gas absorption," Rosa explained in a press release on Monday (5/6).
Rosa further explained that the natural gas supply will be used for the smelter, acid plant, and Precious Metal Refinery (PMR).
Meanwhile, PTFI President Director Tony Wenas expressed his hope for a stable gas supply in the future.
"We are very grateful to PGN for implementing the PJBG followed by the gas-in process. We hope that PGN can maintain the sustainability and reliability of the natural gas supply to support production and the government's downstream program," said Tony.
Rosa continued, the use of natural gas for smelter needs has advantages because it is more efficient and environmentally friendly.
"The added value of more efficient and environmentally friendly natural gas can support PT Freeport Indonesia in implementing energy-saving technology and manifesting synergy in reducing greenhouse gas emissions," Rosa said.
Rosa added that PGN is confident that the use of natural gas will continue to increase as public awareness grows to switch to natural gas as a more environmentally friendly transition energy. This is also to support the government's commitment to achieving Net Zero Emission by 2060.
