PGN Combining Integration And Aggregation Strategies Optimizing Domestic Natural Gas Utilization During Transition Period

JAKARTA - Availability and accessibility of energy is a role that PGN, Subholding Gas Pertamina, can play as a major player in the gas ecosystem in Indonesia. By having a natural gas infrastructure network and the ability to utilize beyond pipeline gas, PGN wants to ensure that all points of demand areas can be met by gas needs.

"We see that trilema energy is in line with the 4A+1S principle, in the long term, PGN does it with a keyword, namely integration and aggregation. Integration of PGN's current excitable infrastructure will be closer to the sources in Pertamina who are also customers," explained PGN's Director of Strategy and Business Development Rosa Permata Sari in Energy & Economic Outlook Gasfest 2024, quoted Thursday, May 16.

Since 2021, his party has seen the conditions at that time that the fragmented pipeline network could no longer support the need to build energy independence. What is needed is integration," said Rosa.

By utilizing the existing infrastructure capacity, the opportunity to increase natural gas utilization is around 14 percent. Meanwhile, if PGN combines with new wells, then refinery and petrochemical, then PGN will be able to increase utilization by around 48 percent. Therefore, the movement of schemes from fragmented to integrated infrastructure becomes very important for the national interest, not just in the interests of PGN's business alone.

The use of domestic natural gas will further increase with the synergy of aligning the strategic plan for the use of national natural gas with PGN cooperation with all stakeholders, regulators and prospective natural gas customers on the downstream side, which of course will receive full support from the government. How will the infrastructure that has been connected later with potential customers or the existing customers so that we can maintain its performance. This can also encourage the growth of new customers. It is hoped that then in 2030 and above there will be a balance between supply supply and demand," explained Rosa.

Based on projection from SKK Migas, gas production will continue to increase. There is a big project in the north gang, the discovery of a new gas giant in Aceh and Andaman. However, integrated infrastructure is a challenge in itself, PGN's role is crucial as the largest gas infrastructure manager in Indonesia.

With its growth in natural gas utilization, the role of natural gas in the energy ecosystem will be even better, especially to become the transitional energy to EBT. Together with Pertamina as a holding, PGN has prepared a General Gas Provision Plan.

We have mapped the condition of the balance gas balance balance, supply and demand. Then how will the opportunity for use for existing infrastructure develop, so that it will meet the demand demand demand needs in cities, industrial areas, transportation through CNG, sea transportation, by understanding the conditions of the gas balance," said Rosa.

Then related to natural gas pipeline infrastructure, PGN requires two networks, namely Cirebon Pipe Phase 2 and Dumai-Sei Mangkei Pipeline. If this infrastructure is connected, then PGN can have flexibility over several sources which today are projected to meet natural gas needs.

For example, if PGN can get a new gas source from Mubadala. This means that PGN can bring gas from Aceh to parts of Central Sumatra. From Central Sumatra, gas can be brought to West Java. Then if the phase 2 Cisem Pipe is completed, then we will have the flexibility of supply from East Java to be brought to West Java," explained Rosa.

Turning context for eastern Indonesia, PGN sees this need better logistics scheduling. One of them is by shipping to be able to move to support a more sustainable energy transition.

"This does not rule out that we also have strategic partners like PLN, a refinery customer that we identify into the gas supply plan. We believe that with integration and aggregation, the results will be optimal. If we integrate by utilizing existing infrastructure, then we can aggregate these commodities, then we hope that the landing price in customers will become more competitive," concluded Rosa.

Currently, natural gas is competitive when compared to fuel costs. If it is interrelated and more competitive, then PGN can increase its role in encouraging energy independence in Indonesia.