PTBA And PGN Will Conduct Feasibility Study For The Coal Gasification Project To Become SNG
JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) collaborated with PT Bukit Asam Tbk (PTBA) in the initiative to develop Synthetic Natural Gas (SNG) from coal.
PGN's Director of Strategy and Business Development, Rosa Permata Sari, explained that this project utilizes the low-rank coal reserves belonging to PTBA in Tanjung Enim, South Sumatra, which so far have not been monetized optimally.
"The location is close to the PGN transmission pipeline network in Pagardewa, South Sumatra, so it has the potential to save infrastructure development," said Rosa, Monday, April 21.
He added that throughout 2025, the two companies will focus on feasibility studies to review the potential construction of SNG production facilities, pipelines, and possible business schemes.
This initiative is in line with the government's priorities in downstreaming and energy independence. If realized, this project has the potential to strengthen domestic gas supply and reduce dependence on imports," explained Rosa.
For information, SNG is a processed coal gas that resembles natural gas. This product can be used as fuel and industrial raw materials.
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"We continue to coordinate with the Ministry of Energy and Mineral Resources, Pertamina Oil and Gas Holding, as well as other stakeholders to ensure studies run according to good governance principles," said Rosa.
Previously, PGN had also initiated supply diversification through the Biomethane project by utilizing POME (Palm Oil Mill Effluent) to produce biogas. Through further processing of biogas, biomethane can then be compressed into Compressed Natural Gas (CNG) to be distributed to customers such as industry, hospitals, hotels, and shopping centers.
PGN is running the Biomethane project with a Japanese consortium and is currently preparing FEED for the Biomethane Refinery Plant in Sumatra. The commissioning target is in the second quarter of 2027 with a capacity of 1.2 BBTUD.
"The Biomethane project is also PGN's commitment to the sustainability of low-carbon natural gas supply, so it can help reduce carbon emissions and support NZE by 2060," concluded Rosa.