SIAK – (20/12) PT Energasindo Heksa Karya (EHK) strengthens its gas trading business portfolio by expanding the gas pipeline network to Perawang Regency, Riau Province. A subsidiary of PT Rukun Raharja Tbk officially conducted the inaugural gas flow in the gas pipeline network on Wednesday, December 20, 2023. The gas pipeline network spans approximately 11.7 kilometers, demonstrating the company's dedication to expanding infrastructure development in the energy sector in this region.

The inauguration event was attended by the Directors of RAJA and EHK, as well as the Directors of PT Indah Kiat Pulp & Paper Tbk (IKPP), the EHK customer set to purchase gas through the pipeline. On this occasion, the CEO of RAJA, Mr. Djauhar Maulidi, stated, "The pipeline construction process took about 8 months, in line with the initial development plan. Thus, this gas pipeline is expected to contribute to the company's revenue from January 2024, as previously communicated to the public. Gas uptake through this pipeline is estimated to contribute around 35% to EHK's gas trading sector. This project represents our collaborative effort with IKPP, and of course, we hope for not only development in this region but also in other areas."

Gas sales through this pipeline are projected to provide additional revenue to EHK of approximately USD 45 million per year over the 10-year gas purchase contract period, resulting in significant financial impact. Currently, the gas pipeline will be exclusively used by IKPP. The company also considers exploring other strategic partnerships in the future and expanding its customer base according to market demand, as the company understands that the Gas Trading business remains a line of business with great potential for development. In addition to Riau Province, the company will continue to develop in other regions across Indonesia.