Boosting Performance: Perta Arun Gas Relies on GUCD and LNG Hub Businesses

The Finance and GS Director of PT Perta Arun Gas, Muhammad Yudi Setiawan, has shared insights regarding the business opportunities presented by Gassing Up and Cooling Down (GUCD) services. According to Yudi, GUCD represents a highly potential additional business line for the company.

“It is precisely these additional businesses that can enable PAG to grow larger. The first additional business we possess is GUCD, or Gassing Up and Cooling Down,” he explained during an appearance on CNBC Indonesia’s Squawk Box.

As is well known, GUCD involves the service of cooling ship compartments before they are loaded with Liquefied Natural Gas (LNG). Specifically, to load LNG into tankers, temperature adjustments are required.

“Our GUCD service must cool the compartments down to -130 degrees Celsius. Only once it has reached the required temperature can the LNG be loaded. This is one of the services we can offer through the GUCD business at PAG,” he stated.

Despite the profitability of this sector, Yudi noted that GUCD faces challenges regarding gas molecule reliability.

“While GUCD is a promising business, there is still work to be done regarding the underlying supply,” he added.

Another potential area is the LNG Hub business, which Yudi likened to a boarding house for ships.

“It is like a boarding house for LNG. You enter, pay, and you are done. We do not incur significant additional expenses, only maintenance and operational costs,” he explained.

According to Yudi, this business could serve as an alternative when regasification is no longer reliable. PAG can lease its tanks to partners for LNG storage.

“We have tanks that we can lease to tenants to store their LNG at our facility. I believe this can operate continuously because we possess sufficiently capable infrastructure for such cases,” Yended concluded.