03 January 2024

PT Rukun Raharja, Tbk (RAJA) Subsidiary Inaugurates New Compressed Natural Gas (CNG) Mother Station in Grobogan, Central Java

PT Rukun Raharja, Tbk (RAJA) Subsidiary Inaugurates New Compressed Natural Gas (CNG) Mother Station in Grobogan, Central Java

Grobogan – (29/12) PT Energasindo Heksa Karya (EHK) strengthens its gas business portfolio through gas business diversification by entering the Compressed Natural Gas (CNG) business since 2021. At the end of 2023, the company officially launched its 2nd Mother Station in Grobogan Regency, Central Java. This subsidiary of RAJA inaugurated the Mother Station on Friday, December 29, 2023, attended by the entire management of RAJA, EHK, and TIS Petroleum E&P Blora Pte, Ltd, the Exploration Company with a Gas Purchase Contract with EHK to supply natural gas to the EHK Mother Station. The inauguration was also attended by relevant authorities, including the Inspector from the Directorate of Technical and Environmental Affairs of Oil and Gas, the Director General of Oil and Gas, ensuring that the entire operation of the Mother Station complies with safety and security standards.

On this occasion, Mr. Djauhar Maulidi, the CEO of RAJA, stated that "The construction of this CNG Mother Station is evidence of RAJA's seriousness in entering the CNG business. RAJA understands the need for business diversification in the gas trade in Indonesia. After nearly two decades of serving pipeline gas, it is time for RAJA to seriously explore the CNG business because of its excellent development prospects in the future. RAJA, through EHK, is currently exploring the construction of Mother Stations in other locations and is expected to be built soon to ensure the even distribution of gas in Indonesia."

The Grobogan CNG Mother Station is EHK's second CNG station, having previously operated a CNG station in Cikarang with a capacity of 2.5 MMSCFD. The Grobogan Mother Station currently has a natural gas compression capacity of up to 1.8 MMSCFD, with the potential to increase compression capacity to 3 MMSCFD in line with additional compression facilities and available natural gas. The construction process of the Mother Station began in March 2023. With a construction duration of about 7 months, the project was completed on time, reflecting a strong commitment to efficiency and quality. In 2024, it is estimated that the Mother Station will contribute an additional revenue of USD 4.5 million per year to the company and has the potential to increase by up to 7% per year in the following years, along with the potential increase in compression capacity and CNG demand in Central Java and surrounding areas. With this facility, RAJA hopes to continue contributing to the progress of the national energy industry, particularly in meeting the CNG needs of industries in Central Java and fulfilling the energy needs of the community in a more efficient and sustainable manner.