Natural Industry Customers Improve, PGN Emphasizes Commitment To National Natural Gas Distribution

Photo: Doc. PGN

JAKARTA - PT PGN Tbk as Pertamina Gas Subholding supports government policies in strengthening and increasing national industrial growth. Support is realized by PGN by expanding natural gas infrastructure networks to various regions, so that natural gas absorption in industrial centers is increasing.

PGN Director of Sales and Operations Faris Aziz explained that the industrial segment will still be the main support for PGN's gas demand, along with industrial and economic movements that continue to stretch after the pandemic.

PGN's natural gas trading volume continues to increase from 828 BBTUD in 2020 to 976 BBTUD in the first quarter of 2023. Meanwhile, the number of industrial customers as the customer sector that absorbs the largest gas has increased from 2,487 customers in 2020 to 2,925 customers.

PGN is also committed to supporting the Government in economic growth and the national industry during the pandemic. PGN is committed to implementing the Decree of the Minister of Energy and Mineral Resources, in which the industrial and electricity sectors get special price gas. It is hoped that the national economy can grow faster and sustainably through this policy," said Faris, in his statement, Friday, June 23.

Since 2020, PGN has carried out the assignment of Special Gas Prices for Certain Industries (HGBT) to industry and power plants in accordance with assignments from the Government through the Ministry of Energy and Mineral Resources. During January-May 2023 the realization of HGBT volume has reached more than 500 BBTUD with growth of 5.6 percent compared to the realization in 2020.

Likewise, the number of beneficiaries of HGBT through PGN has increased to more than 250 industries by 2023. This number has increased to 10.8 percent of the total recipient industries in 2020. The addition of HGBT beneficiaries is in seven industrial sectors and power plants in accordance with the stipulation of the Minister of Energy and Mineral Resources.

Regarding the implementation of the Decree of the Minister of Energy and Mineral Resources on HGBT for seven industrial sectors and power plants until 2024, PGN has made various efforts to maintain performance and maintain the sustainability of national natural gas services. Among other things, by increasing the activities of the Natural Gas Commerce to new sectors, as well as developing the beyond pipelines mode through the initiation of the LNG Retail project and the development of gas distribution via the Compressed Natural Gas (CNG) mode.

We see the movement of industries that are starting to move and the high level of community mobility in 2022, especially after the world adapts to a new normal lifestyle. This makes energy needs grow rapidly. PGN is ready to support an increase in the number of users and the volume of natural gas, especially for the industrial and electricity sectors with reliable natural gas supply," said Faris.

PGN has a mission in business development through the use of natural gas for gas-based industries and their derivatives. The service expansion program through connectivity and natural gas capacity of PGN, is expected to be optimal for the development of services for industry, commercial and power plants.

PGN's natural gas business activities have spread across 17 provinces and 73 cities/regencies in Indonesia. The portfolio for the management of downstream PGN Group's natural gas infrastructure includes 95% of the natural gas downstream infrastructure that has been built and operational.

Faris hopes that the government's support regarding ease of policy in obtaining gas supply, both pipeline gas and LNG, will increase national gas utilization. With this role, PGN can be more comprehensive in carrying out its mandate to manage national gas trading and expand national natural gas access.

PGN also believes that the government has the option to develop national natural gas infrastructure and utilization, while still cooperating with PGN as the main partner. PGN will continue to make maximum efforts to optimize the portfolio and serve the community," concluded Faris.