"PGN always strives to deliver gas on time in accordance with the industrys demand. Now, we have begun delivering gas to KNSS, starting Feb 1," PGNs Area Sales Head for Cilegon, Yohanes Chandra, noted in a statement here, Thursday.
KNSS, established on December 26, 2012, is a joint venture between Japans Nippon Steel & Sumitomo Metal Corporation and Indonesias PT Krakatau Steel Tbk.
The company produces some components for the automotive industry, such as galvanized, galvanealed, and cold rolled steel, and has an annual production capacity of 480,000 metric tons.
Chandra noted that PGNs natural gas would be utilized for the plants 4,140 cubic meter per hour furnace.
"Its gas consumption would gradually increase to 1,325,000 cubic meters per month by 2020," he noted.
KNSS Mechanical Engineer Yusuke Tosa stated that the natural gas supplied from PGN has a higher calorie value, thus, it could result in optimum, stable, and clean heating.
"PGN would become a reliable partner to support the development of KNSS in future. Currently, we will test its equipment and utility, with the first production targeted to begin in Aug 2017," Tosa said.
For the Cilegon area, PGN has supplied natural gas to 35 large-scale industries and 237 households and operated a 101-kilometer (km) pipeline.
The company has distributed natural gas to 1,652 large-scale industries and power plants across the country, 1,929 commercial subscribers, such as hotels, restaurants, hospitals, and small and medium enterprises, and 204 thousand households.
It has operated gas pipelines stretching a total length of 7,278 kms, or some 80 percent of the countrys downstream natural gas infrastructure.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2017
