PGN Guarantees Availability Of Supply And Synergy Of Industrial Sector Natural Gas Planning

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) continues to strive for the increasing fulfillment of gas needs for all customers, especially in the industrial sector. This is done in order to prioritize the sustainability of the industry while still supporting existing government policies.

In the next few years, gas will have an important role in line with economic growth and strategy towards NZE. We know that in developing countries like Indonesia will continue to grow from all aspects such as industry and the like, so there is a need for energy availability. Currently, Indonesia is committed to communities in the world that want to realize the creation of clean energy, one of which is natural gas," explained Deputy President Director of PT Pertamina (Persero) Wiko Migantoro at the Customer Business Forum 2024 (CBF 2024) event quoted Thursday, October 17.

PGN President Director, Arief S. Handoko said, through the 2024 CBF forum, PGN showed confidence and optimism in maximizing gas absorption in Indonesia and proving its commitment to prioritizing customers for industrial progress.

"Through this forum, PGN hopes to provide benefits for customers as a whole, because in terms of customers, they must hope that PGN will guarantee gas availability for the sustainability of the industry. Therefore, in the future PGN will expand to Eastern Indonesia by making massive investments for the provision of clean LNG from upstream to downstream Indonesia as an effort to convince customers that gas is always available," added Arief.

Arief added, in meeting customer natural gas needs and adapting to the dynamics of the business environment that has occurred in recent years.

PGN, he said, has made various efforts, namely maximizing gas absorption such as LNG absorption in West Java which has reached 60 BBTUD, where currently national natural gas services have experienced a supply portfolio shift which was initially dominated by pipe gases. Now 60 percent are served by pipe gas and 40 percent are served through LNG.

"Currently, natural gas demand continues to increase so that PGN will continue to strive to provide piped gas with intensive communication with the government to allocate piped gas to industrial customers. Meanwhile, the rest will be filled by LNG supply supplied from the infrastructure of FSRU Lampung, Nusantara Regas, and Aceh," said the Commercial Director of PT PGN Tbk, Ratih Esti Prihatini.

Ratih added that infrastructure development is also being activated by PGN with the aim that natural gas sourced from Sumatra can be distributed to West Java through the Dumai Sei Mangke, SSWJ, and Cisem 2 pipes.

PGN aggressively expects maximum absorption of gas by industry to maintain industrial sustainability, one of which is LNG. Because LNG is the energy of choice and is significant to support energy supply in the following years in accordance with projected supply availability in several new development areas dominated by offshore, said Ratih.

For information, the forum is also a place for discussion and communication between the two parties regarding the planned gas price in 2025. It is explained that the mechanism used will remain the same as in 2024 which consists of pipe gas prices and gas regasification prices.

Of course, the price of the regasification gas will be dynamic, adjusting the dynamics of LNG prices according to the formula set by the regulator and the condition of the ICP. It is hoped that the implementation of dynamic regasification gas prices based on the ICP formula will allow customers to obtain the right price signal and gas prices that remain competitive when compared to fuel.

LNG prices refer to the Indonesia Crude Price (ICP) set by the Minister of Energy and Mineral Resources every month. If we look at its realization, gas prices tend to fluctuate which are influenced by supply and external factors, so that gas prices can be low or high but still refer to the ICP. This is a strategy that we apply for 2025 to the future considering the availability of LNG which is more dominant than pipe gas. We really hope that the industrial sector can continue to grow and be sustainable, "added Ratih.

Finally, several things that are PGN's commitment to customers, especially the industrial sector, namely PGN, always strives to support the fulfillment of domestic natural gas, especially in the industrial sector, amounting to around 2500 customers as of 2024 and are expected to increase to 2700-2750 industrial customers in the next few years. Given the increasing community's need for gas, LNG will support availability and reliability in the distribution of PGN's natural gas.