ABSTRACT

PT A, as one of PT X's gas buyers, asked for gas supply during PT X's turnaround period in which all PT X's production facilities had to be shut down. This study to analyze the strategic management undertaken by PT X to meet the demand for gas supply. It employs a qualitative approach by conducting interview with related experts, observing documents, and calculating costs and benefits. Based on the analysis of the build-borrow-or-buy framework, PT X should choose ‘borrow’. The borrowing framework is a gas lending and borrowing scenario between PT X and PT Y to fulfill PT A's request which was legitimated in the Lending and Borrowing Agreement (LBA). PT Y supplied gas to PT A on behalf of PT X, so PT X still earned revenue. On the other hand, PT Y also profited from the condensate production.