Jakarta—Indonesia’s commitment to accelerate the transition to clean energy has received a significant boost from the upstream oil and gas sector. PT Pertamina Hulu Energi (PHE), as Pertamina’s Upstream Subholding, secured 10 natural gas sale and purchase contracts (GSPAs) with various strategic partners on Tuesday, 20 May, during the 49th IPA Convention & Exhibition at ICE BSD, Tangerang.
These agreements aim to fulfil national energy needs and play an important role in reducing dependence on high-emission fossil fuels. The contract signing was facilitated by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), which was also the regulator.
“This is a concrete step to ensure that natural gas as a transitional energy can be available properly and efficiently, while strengthening national energy security,” said Rachmat Hidajat, Director of Strategic Planning and Business Development of PHE, in a written statement.
Contract details and gas utilisation objectives
PHE and other Pertamina subsidiaries have contracts with several gas user companies, ranging from the industrial sector, electricity, to oil refineries. The details of the contracts are as follows:
| Contract | Volume (BBTUD) | Objective | |
| 1 | PHE Ogan Komering – PGN and affiliates | 4 BBTUD | Industrial gas supply |
| 2 | PHE North Sumatera Offshore – PGN and affiliates | 8,48 BBTUD | End customers in the North Sumatra region |
| 3 | Pertamina EP – PGN | 11 BBTUD | Industrial needs in Medan |
| 4 | Pertamina EP – PGN and affiliates | 17 MMSCFD | Industry in West Java |
| 5 | Pertamina EP – PT Bayu Buana Gemilang | 1 MMSCFD from Tambun field | Industries around Tambun |
| 6 | Pertamina EP – Bayu Buana Gemilang | 5 MMSCFD from Jatinegara I field | Industry and electricity |
| 7 | Pertamina EP – PLN and PLN Energi Primer Indonesia | 12 MMSCFD | Muara Tawar Plant |
| 8 | Pertamina EP – PLN and PLN Energi Primer Indonesia | 5 MMSCFD | Electricity in Tanjung Batu |
| 9 | PHE Offshore North West Java (ONWJ) – Pertamina and Kilang Pertamina Internasional | 23 BBTUD | Balongan refinery |
| 10 | Pertamina/KKKS East Kalimantan – PLN and PLN Energi Primer Indonesia | 36 BBTUD | Power plants in Tanjung Batu and Bontang |
Natural gas as a transitional energy pillar
On the same occasion, Rachmat emphasised that natural gas is the ideal medium-term solution for a more environmentally friendly energy system.
“With its flexibility and lower carbon emission levels than coal, natural gas plays a strategic role as a bridge to a low-carbon energy future,” he said.
He also added that the efficiency and reliability of the gas supply chain will be strengthened through integrated cooperation from upstream to downstream, including with PLN and private companies that are the primary gas consumers. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
