Perta Arun Gas Signs Development Cooperation Agreement with Aslan Energy Capital

JAKARTA, INDONESIA, September 11, 2023/EINPresswire.com/ -- As part of implementing its vision to become a world-class regasification and LNG Hub company, PT Perta Arun Gas (PAG) as a subsidiary of PT Pertamina Gas has signed a Development Cooperation Agreement (DCA) with Aslan Energy Capital Pte Ltd., Singapore (AEC) regarding the establishment, development and operation of a Blue Ammonia Production facility which will be located in Lhokseumawe Special Economic Zone. The signing ceremony was held in PAG’s Head Office in Jakarta on Wednesday 26th July 2023.

The Agreement was signed by President Director of PAG, Bara Ilmarosa and Managing Director of AEC, Dr. Muthu Chezhian as first outcome resulting from the Memorandum of Understanding (MoU) signed by PAG and AEC in January, 2023 in exploring joint developments across the gas and clean energy value chain.

The signing event was witnessed by PAG Finance & GS Director and PAG’s Management as well as AEC management, shareholders and investment banking partners.

At a planned peak production capacity of 600,000 Tonnes Per Annum of Blue Ammonia, the project is considered the first of its kind in Asia to develop blue ammonia at such large scale, backed by localized carbon capture and storage (CCS), utilizing the depleted reservoirs at the giant Arun gas field. The development works have commenced and the project is planned to achieve commissioning and first production by mid-2028.

President Director of PAG, Bara Ilmarosa said the DCA would demonstrate PAG's ability to play a key role in meeting both Indonesian and Asian clean energy demand and decarbonization targets. The project is the result of the engagement that the joint team had since the execution of the MoU to identify the first project with a high degree of success potential.

"We identified this project due to the optimal leverage of the existing infrastructure facilities in our Lhokseumawe SEZ and the market dynamics, coupled with the feed gas and market solutions that our partner AEC have identified and secured. The availability of CO2 sequestration facility was the key factor in the selection. This cooperation will bring substantial benefits for the region, for Lhokseumawe Special Economic Zone (Kawasan Ekonomi khusus Arun Lhokseumawe) and be a key contribution by PAG into Indonesia energy strategy," he said.

He also added that this potential collaboration might also increase company revenue. “PAG and AEC are expected to go through a very good cooperation and relationship in the future,” Bara said.

Meanwhile, Managing Director of AEC, Dr. Muthu Chezhian said that Arun’s LNG terminal and combined with its new energy vision has great potential to become a key strategic hub for sustainable growth. The Blue Ammonia project is anticipated to be the largest of its kind in Asia and will cater to both the domestic market and regional export market in North Asia.

“AEC focuses on originating and delivering world class clean energy projects and infrastructure, logistics, and processing solutions with Indonesia as the core hub market for the group. This project will accelerate regional development, catalyse the economic growth in Lhokseumawe SEZ and enable net zero solutions that will benefit the fast growing heavy industries and agricultural sector of Indonesia, while providing clean fuel bunkering to SE Asia’s maritime sector," Dr. Chezhian said.

Strategically located in Lhokseumawe, Aceh Province, near the vital Strait of Malacca international shipping lane, Ex Arun’s refinary’s 1.400 hectare which is part of a special economic zone (KEKAL). PAG aims to become a world-class regasification, LNG and clean energies hub company while its vision becoming Asia’s central LNG hub by 2030.

PR and Communications Manager
Aslan Energy Capital
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