PGN Maintains Natural Gas Distribution In West Java, Batam, Central & South Sumatra In Accordance With Government Decree

PT PGN Tbk as Pertamina Gas Subholding is committed to carrying out midstream and downstream functions in national natural gas services. As a midstream business actor who distributes natural gas from upstream oil and gas to natural gas users, PGN 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 would like to thank the Minister of Energy and Mineral Resources, the Directorate General of Oil and Gas, SKK Migas, and the KKKS, for their intensive direction, communication and coordination so that PGN has received a positive signal for certainty in determining the allocation and gas prices for supplies to the West Java, Batam, Central and Southern Sumatra regions. We have 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 be set by the government," said PGN Director of Sales and Operations Faris Aziz, Wednesday, October 4.

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

Faris explained that natural gas infrastructure in Sumatra to West Java is supported by infrastructure consisting of transmission, distribution, FSRU pipeline infrastructure and other supporting facilities. This infrastructure is integrated to connect multiple supplies from various gas supply sources, both pipeline gas and LNG gas which are well managed by PGN Group. This is PGN's commitment to maintaining the reliability of gas distribution to customers, thus creating certainty, continuity, and support for the use of environmentally friendly energy and improving the economy.

Meanwhile, in Batam, 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 of 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 consumption reaching 118.60 BBTUD. reliable natural gas supply is one of the key factors in developing national use of natural gas, including meeting market potential needs in the Batam region.

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 nearly 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 gas as well as through the supply of LNG so that the level of service to existing customers is achieved and can meet future demand potential growth in both West Java, Batam, Central and South Sumatra as well as in all regions of PGN operations in Indonesia. We believe that high natural gas absorption in various sectors will have a positive impact on improving the national economy," said Faris.

PGN is also committed to developing reliable infrastructure and innovation of natural gas services, so that it has a positive impact on the absorption of environmentally friendly energy in the country is increasing. Natural gas has added value as alternative energy during the energy transition to the Net Zero Emission target in 2060.

"PGN has the principle to continue to maintain the reliability of gas distribution and optimal development of natural gas infrastructure. On the other hand, we also continue to consider business scenarios in detail and sustainably both on the operational and financial side," concluded Faris.