Petrokimia Gresik Strengthens Gas Supply with Signing of Gas Sales and Purchase Agreement (GSPA) at IOG 2023

Petrokimia Gresik, an Agroindustry Solutions company and a member of the Pupuk Indonesia group, signed a Gas Sales and Purchase Agreement (GSPA) with Pertamina EP Cepu during the International Convention Indonesia Upstream Oil & Gas 2023 (IOG) event in Bali on Wednesday. Through this agreement, Petrokimia Gresik secures a daily delivery of 15 Million Standard Cubic Feet per Day (MMSCFD) of gas from the Jambaran Tiung Biru (JTB) Unitization Field, Bojonegoro, East Java.

The signing was witnessed by the Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia, Luhut Binsar Pandjaitan; Minister of Finance, Sri Mulyani; Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia; and Head of SKK Migas, Dwi Sutjipto.

Digna Jatiningsih, the Director of Operations and Production at Petrokimia Gresik, representing Dwi Satriyo Annurogo, the President Director of Petrokimia Gresik, expressed after the signing of the GSPA that with this additional gas supply, Petrokimia Gresik becomes even more optimal in meeting the national fertilizer needs.

"The gas from Jambaran Tiung Biru is an additional gas supply for Petrokimia Gresik, not an extension of the contract. This new supply makes the company's performance even more optimal, and the plant can operate at full capacity or 100 percent. The previous total gas supply at Petrokimia Gresik was only 130 MMSCFD, while the total requirement is 144 MMSCFD," explained Digna.

In distributing this gas, Petrokimia Gresik utilizes the Gresik-Semarang Transmission Pipeline managed by the affiliate of Gas Subholding, PT Pertamina Gas (Pertagas). She also revealed that the additional gas from JTB will be used by Petrokimia Gresik as raw material for fertilizers. Additionally, it will be used for supporting utilities in the production process of both fertilizer and non-fertilizer products.

"With the increasing demand for fertilizer and national food, the need for gas as fertilizer raw material is also growing. This additional gas supply is crucial for the smooth production of fertilizers in Petrokimia Gresik, both subsidized and non-subsidized fertilizers," reiterated Digna.

Meanwhile, to ensure the certainty of gas supply for Petrokimia Gresik's future needs, Digna also signed a memorandum of understanding with Husky-CNOOC Madura Limited (HCML) at the same event.

Digna revealed that Petrokimia Gresik has been a gas buyer from the MDA-MBH Field, BD Field, and MAC Field in the Madura Straits Working Area, all managed by HCML. Through this memorandum of understanding, Petrokimia Gresik aims to explore plans for purchasing gas from other fields in the Madura Straits Working Area to maintain a continuous gas supply from HCML.

On the other hand, to ensure the gas supply at Petrokimia Gresik remains secure, the company previously signed a Head of Agreement (HoA) for the Lengo Field in the Bulu Block between Petrokimia Gresik and Kris Energy Ltd., as the Cooperation Contract Contractor (KKKS). Through this collaboration, Petrokimia Gresik will receive an additional gas supply of around 150 MMSCFD from the Lengo Field in the Bulu Working Area and the Mustika and West Kepodang Fields in the Sakti Working Area in Tuban Regency for the development of a new ammonia and urea plant.

"Through the availability of competitively priced natural gas, we can enhance Petrokimia Gresik's competitiveness to ensure national food security, increase domestic agricultural productivity, and support Pupuk Indonesia's global initiatives," concluded Digna.