Pertamina Gas Subholding Expands Natural Gas Utilization Towards Zero Net Emission

JAKARTA - PT PGN (Tbk) as the gas subholding of PT Pertamina Persero, has a commitment and consistency to realize energy independence in the country, through strengthening gas supply and expanding natural gas infrastructure.

In the midst of the government and global community's efforts to achieve zero net emissions in 2050-2060, PGN sees this as an opportunity.

Natural gas as one of the fossil energy products that is proven to be clean, environmentally friendly and efficient, will have a strategic role in the transition process towards zero net emission. clean. The target for zero net emissions is 2050-2060. The energy for the transition period to achieve this target is clean energy from fossils, namely gas. Europe is starting now to use gas again. This means that the demand for gas will be very significant. This is our opportunity to use much cleaner gas,” said PGN President Commissioner, Arcandra Tahar in the PGN Energy Economic Outlook 2022, Wednesday, January 12.

During the transition to renewable energy, the use of gas must be optimized. For this reason, innovation and technology are needed to increase the effectiveness and efficiency of gas transportation from one place to another.

“In the long term, ESG and green energy are under increasing pressure. We have to do energy diversification and start switching to renewable energy,” said Mirza Adityaswara, an economist who was also present as a resource person in the discussion.

In line with the two, the President Director of PGN, M. Haryo Yunianto said that as a company that focuses on the energy sector, PGN always opens space to optimize every opportunity that exists to meet energy needs, especially natural gas, which will certainly continue to increase.

The development of integrated natural gas infrastructure during the current energy transition is expected to grow PGN's gas business as Pertamina's Gas Subholding. For 2022, PGN targets to increase gas trading management for the retail, commercial, and electricity sectors to more than 1,000 BBTUD, including the management of international LNG trading.

With the role of natural gas as transitional energy, PGN also encourages the growth of Subholding Gas commercial management to around 1,400 BBTUD by 2027.

From 2022-2027 it is projected that LNG supply will continue to increase. This is due to a decrease in the supply of gas from the existing pipeline. In addition, it is also hoped that there will be an increase in retail LNG demand for areas far from the existing infrastructure. This demand will be supplied either through piped or non-pipeline liquifaction gas, as well as stranded gas utilization.

The industrial segment remains the largest backbone demand for Subholding Gas where synergies for supplying gas to refineries and smelters, including breakthroughs in technology selection and the provision of non-pipeline CNG/LNG retail modes by utilizing stranded gas sources, are urgently needed. The transportation segment is also growing in line with increased conversion of BBM to natural gas for the ship, logistics vehicle, land and train segments.

In addition, volume growth also comes from the household segment with a plan to add 1 million households per year until 2026.

"National and global energy management still continues to foster PGN's optimism going forward in developing infrastructure and increasing the use of natural gas in the current energy transition," Haryo concluded.

PGN strives to be able to contribute optimally in various global and national energy dynamics. Economic Energy will become increasingly strategic and PGN will play its strategic role to be actively involved in promoting national economic progress and growth.