Pertagas to supply CNG to Teluk Lamong port

Gas distribution company PT Pertagas Niaga (Pertagas), an indirect subsidiary of state-owned oil and gas firm PT Pertamina, will supply CNG to the Teluk Lamong multipurpose port terminal in East Java starting next year, Bisnis Indonesia reported on Saturday.

Pertagas signed on Thursday a Head of Agreement with PT Terminal Teluk Lamong, a subsidiary of state-owned port operator PT Pelindo III, on the planned CNG supply.

The company will supply CNG at a volume of 21.9 million kilo liters premium gasoline equivalent in 2015, which would gradually increase up to 73 million kilo liters of premium gasoline equivalent.

Pertagas President Director Jugi Prajogio said that his company will initially deliver the CNG via trucks to the port, but will switch to pipeline, which will start construction next year including a mother station, and to be completed in 2016.

Terminal Teluk Lamong President Director, Prasetyadi said that the use of gas at the new Teluk Lamong port, which is scheduled to start operation in October of this year, would help ensure efficient cost as gas is cheaper compared to petroleum fuel. (*)