PGN signs cooperation agreement with ferry operator

IDX-listed gas distribution company PT PGN Tbk signed on Tuesday a cooperation agreement with PT ASDP Indonesia Ferry, a state-owned ferry operator, to carry out a joint study for operation of new dual fuel vessel serving the Merak (in Banten)-Bakauheni (in Lampung) shipping route.

PGN President Director Jobi Triananda Hasjim said in a statement that 70 percent of the fuel to be used in the new vessel will be LNG and 30 percent diesel fuel.

He said that the proposed dual fuel vessel forms part of PGN efforts to increase the utilization of gas in the country, which is considered cheaper and more environmentally friendly than diesel.

Meanwhile, ASDP President Director Faik Fahmi said that the dual fuel program, which initially will be a pilot project in the Merak-Bakauheni route, will help improve cost efficiency of the company?s ferry operation. He added that the cooperation agreement is valid for one year and can be extended.

Last year, PGN and ASDP signed similar agreement on joint study for dual fuel vessel serving the Ketapang (in East Java)-Gilimanuk (in Bali) route.

Editing by Reiner Simanjuntak