Pertamina Gas Subholding Committed to Fulfill Demand for Gasification Gas RU IV Cilacap 51 MMSCFD

Jakarta, July 28, 2022 – In optimizing the Land Based LNG Regasification Terminal RU IV Cilacap project, Pertamina Gas Subholding, PT PGN Tbk is ready to fulfill the demand for natural gas to RU IV Cilacap with around 51 MMSCFD total annual gas contract volume. PGN and PT Kilang Pertamina International (KPI), as Subholding Refinery & Petrochemical, agreed on the annual contract volume based on the RU IV Cilacap Refinery needs of ± 36 MMSCFD starting in 2024 and the demand for the New Diesel Hydrotreating (New DHT) project of 15 MMSCFD starting in 2026.

Director of Infrastructure and Technology of PGN, Achmad Muchtasyar, in the Strategic Initiative Agreement for the Development of the RU IV Cilacap LNG Regasification Terminal, July 25, 2022, signing said the contract period had also been agreed to 30 years. This contract period is intended to optimize the project's economy and fulfill the cost efficiency strategic target at the refinery.

“Referring to the effort to achieve fuel cost savings at RU Cilacap, this is the basis for selecting gas distribution options using the small land-based regasification scheme. Pertamina also fully supports this project, so that PGN will utilize Pertamina's LNG portfolio of eight cargoes per year for RU IV Cilacap needs," said Achmad (27/7/2022).

Achmad continued that for gas distribution to RU IV Cilacap, an LNG Carrier (LNGC) with a 19,000 M³ size will be used in Phase 1 (2024 – 2025), and a new LNGC build with a 35,000 M³ size in Phase 2 starting in 2026.

The RU IV Cilacap LNG Regasification Terminal Project will also optimize the Bontang Refinery as an LNG Hub. Therefore, PGN continues to coordinate the scheme for gas distribution to RU IV Cilacap, the jetty and land utilization with PT KPI, PT PIS, PT Badak NGL, and other related parties according to the project principles and still prioritizes Pertamina Group's synergy aspect. This synergy between Sub Holdings will provide optimal consolidation benefits for the Pertamina Group.

The market potential for distributing LNG to RU IV Cilacap is also quite large, as well as being an entry point for the retail LNG in southern Central Java development.

“PGN provides the best service in the agreement between PGN and KPI for mutual benefit in the Pertamina Group. Refinery gasification is also PGN's contribution to the national economy, domestic energy sources optimization, and the national energy mix achievement in the energy transition period," conveyed Achmad.**

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