Pertagas Niaga conducts trial of LNG trucking

Gas trading company PT Pertagas Niaga, an indirect subsidiary of state-owned oil and gas firm PT Pertamina, has started its new LNG trucking business in North Sumatra by conducting early last month trial of filling LNG onto ISO tank at the filling station owned in Lhokseumawe, Aceh Province, owned by affiliate PT Perta Arun Gas.

Pertamina said in a recent statement that the LNG was delivered to PT Kedaung Medan Industrial in Tanjung Morawa, Medang, North Sumatra Province, where the LNG would then undergo regasification at the location.

?Gas demand from industries in North Sumatra is very urgent to be fulfilled, and the LNG trucking is the right solution specifically for consumers in regions where gas pipeline is non-existent,? said President Director of Pertagas Niaga, Linda Sunarti in the statement.

Linda said that here company has prepared four LNG ISO tanks, each with capacity of 0.4 mmscfd.

Pertagas Niaga is confident that the LNG trucking will strengthen its gas marketing business in the North Sumatra region. The company also supplies gas to consumers in the region via the Arun-Belawan-KIM-KEK pipeline owned by PT Pertamina Gas, its parent company.

?Our target is to be able to dominate the North Sumatra market. The LNG trucking is a solution to penetrate the market within a short time,? Linda said.

Gas demand from industries in North Sumatra is estimated at 30 mmscfd, but so far only about 6 mmscfd has been fulfilled. One of the challenges is the high gas price and declining production at the Pangkalan Susu field.

Editing by Reiner Simanjuntak