Optimization Of PGN's Strategic Policy For Pertamina's Gas Subholding 2023, Improve Natural Gas Infrastructure Utilization And Development

JAKARTA - Pertamina Gas Subholding, PT PGN Tbk, consistently implements strategic policies to achieve optimization of natural gas management. Mainly, PGN wants to achieve the target of natural gas trading volume through the addition of new customers, product development, product availability management and product development.

"Through the business of PGN's subsidiaries, business diversification is carried out to support the company's performance. Projects carried out include commercialization of Rokan Oil Pipes, gasification of refineries and power plants, as well as other downstream natural gas derivative businesses such as ethrochemical, ethanol, fertilizers, and so on," explained PGN President Director M. Haryo Yunianto in a Public Expose held on Monday, November 28.

"The absorption of gas by customers is also expected to increase with the availability and additional gas supply from HCML, PSC Blok Jabung, and the Kepodang field and Jimbaran Tiung Biru in 2022 through the Gresik-Semarang transmission pipeline," said Haryo.

Regarding the strategic investment in power generation gasification, it will be carried out based on Ministerial Decree 249/202 (previously Kepmen 13 of 2020 and Kepmen 02 of 2022), namely gasification of 47 generating points with a total volume of LNG needs of 282.93 BBTUD.

Of the 47 locations at KEPMEN 249/2022, as many as 24 power plants have the status of operation with 3 plants with procurement/construction status, and 20 plants with planned status. The main priority of implementing Kepmen 249/2022 is the North Papua Cluster and its implementation implementation will be coordinated by the Ministry of Energy and Mineral Resources.

PGN through its subsidiary, PT Pertagas, has completed the construction of a 367 km oil transmission pipeline from Minas-Duri-Dumai and the Balam-Bangko-Dumai Corridor (WK Rokan PSC).

"Thank God the overall operation and commercialization can begin at the end of 2022 with a potential volume of 265,000 barrels per day. This project is also expected to contribute to the increase in the Company's revenue in the oil transportation segment," explained Haryo.

Haryo continued, services to the household segment will be expanded to support subsidy reduction policies. The target of RPJMN jargas is 4 million Home Connections (SR) until 2024. This project is expected to have a potential volume of around 21 BBTUD.

For household Jargas through the 2022 State Budget, PGN built as many as 40,777 SR with the progress of construction in September 2022 of 81.76 percent. Furthermore, PGN will also build gas networks financed with internal investment in PGN in 17 Operation Areas, where the progress is up to the third quarter of 2022 in FEED status of 905,000 SR and FID status of 159 thousand SR.

"The next program, gasification of oil refineries supports the efficiency of Pertamina's refineries through the conversion of refinery oil into gas. Progress of the current project, PGN has flowed gas with a volume of up to 30 BBTUD since the end of August 2021. For RU IV Cilacap, the operational target for this project is in December 2024. Furthermore, RU V Balikpapan, project progress is 42.82 percent with an operational target in July 2023," explained Haryo.

To date, PGN's gas trading captive market has reached 92 percent, supported by an 11,500 KM pipeline with 100 percent network reliability. The current number of customers is 2,517 commercial & industrial, 1,914 small customers, and 765,756 households.

Regarding ESG, PGN is one of the issuers with good ESG performance where the indicator is included in the ESG Leader Index on the Indonesia Stock Exchange with a rating score from Sustainalytic this year of 28.1.

PGN will continue to seek new business opportunities, exploring the global market in the LNG business chain. Various MoUs have been agreed upon with several global business people, and are expected to increase into partnerships in business schemes that can provide added value for parties in the future.