Safe Gas Supply, PGN Waits For The Determination Of Allocation And Prices From The Minister Of Energy And Mineral Resources

Illustration (Photo: Doc. Antara)

PT PGN Tbk ensures that natural gas stocks in several areas are safe after the end of the contract with KKKS.

PGN's Director of Sales and Operations, Faris Aziz, said that his party continues to coordinate with stakeholders and the government in maintaining certainty, security of natural gas supply and services, especially for areas affected by the termination of contracts with KKKS.

"PGN has received a positive signal for certainty in determining the allocation and price of gas for supplies to West Java, Batam, Central and South Sumatra," he said in an official statement, Thursday, October 5.

Faris added, if PGN has also signed a temporary Joint Agreement with KKKS so that gas from upstream can be channeled to the PGN pipeline network and can be utilized by gas customers.

"Until now, we are still waiting for the determination of the allocation and official price from the Minister of Energy and Mineral Resources. Of course, this will have an impact on our services in meeting gas needs in these areas where customers can still enjoy natural gas flow according to the allocation and price that will later be set by the government," he continued.

The volume of management in West Java which includes Banten, DKI Jakarta and West Java is more than 500 BBTUD and the number of customers is more than 200,000 consisting of household segments, small customers, commercial and industrial customers to power plants.

He explained that natural gas infrastructure in Sumatra to West Java is supported by infrastructure consisting of transmission, distribution, FSRU, and other supporting facilities.

This infrastructure is integrated to connect multiple supplies from various gas supply sources, both pipelined gas and LNG gas, which are managed properly by PGN Group.

"This is PGN's commitment to maintaining the reliability of gas distribution to customers, so that it will create certainty, continuity, and support for the use of environmentally friendly energy and economic improvement," explained Faris.

Meanwhile, in Batam, he added, PGN volume management has reached more than 90 BBTUD to serve 5,971 customers consisting of household segments, small customers, commercial and industrial customers to power plants through natural gas pipeline infrastructure along 273.46 km.

PGN's natural gas infrastructure passes through several Industrial Estates and commercial centers in Batam such as Tanjung Uncang, Panbil, Batamindo, Kabil, Batam Center, and Lubuk Baja.

Supported by reliable infrastructure and competent personnel, PGN continues to be committed to meeting the needs and market potential in the Batam area spread across Batam Island, Bintan, and Kundur with a total potential volume of gas usage reaching 118.60 BBTUD.

The reliable natural gas supply is one of the key factors in developing national use of natural gas, including meeting the market potential needs in the Batam area.

In the Central Sumatra region, PGN's operating area includes Dumai and Pekanbaru with a distribution volume of more than 30 BBTUD to serve nearly 14,000 customers in the household, small, commercial, and industrial segments.

Then in South Sumatra and Lampung, PGN serves more than 68,000 customers with a total management volume of almost 18 BBTUD.

"In the future, in maintaining the fulfillment of national natural gas needs, PGN continues to strive for the availability of natural gas volumes other than pipeline gases also through LNG supply so that the level of service to existing customers is achieved and can meet the growth of potential demand in the future in West Java, Batam, Central and South Sumatra as well as in all areas of PGN operations in Indonesia," said Faris.