PGN Optimizes The Role Of National Natural Gas Aggressors

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) continues to prioritize optimal natural gas affordability, especially for industry. This commitment is carried out in order to maintain the sustainability of natural gas utilization for business activities and industrial investment and continue to support government policies, thus providing a multiplier effect on the national economy.

There are three main elements that are interrelated and form an industrial sustainability foundation, namely gas production and allocation, demand and utilization, and infrastructure readiness. PGN plays a role in synergizing these three elements in order to run sustainably.

"PGN as a national natural gas aggregator optimizes its role to ensure gas distribution from supply handover points to customer facilities, supported by pipeline infrastructure readiness of approximately 31 thousand kilometers and LNG regasification facilities in Arun, Lampung and West Java," said PGN President Director Arief S. Handoko at the Customer Business Forum with industrial customers in the SOR II area on Tuesday, June 24.

Arief continued, PGN understands the challenges currently facing customers, so PGN continues to strive to meet gas needs at competitive prices. Since May 2024, LNG's gas supply has been added to balance the supply of piped gas.

"LNG continues to be worked on so that it can become a domestic supply portfolio in the long term, so that it is hoped that the formulated prices can remain competitive," he said.

PGN also continues to coordinate with the government and relevant stakeholders to obtain natural gas supply sources. Of course, to meet domestic energy needs and maintain the availability of gas supply," explained Arief.

In addition, PGN is aggressive in building and developing natural gas infrastructure so that customer connectivity with natural gas gets better. Infrastructure is a crucial part for PGN to support energy security and affordability aspects, as well as increase the role of natural gas as transition energy. PGN has compiled a road map for infrastructure development that is integrated nationally," added Ratih Esti Prihatini as the Commercial Director of PGN at the same forum.

PGN comes with a wide selection of solutions that can be utilized, so that customers can get optimal added value. PGN has product and service differentiation that can be adjusted to the needs, the most optimal situation and conditions for customers to use natural gas. The affordability to pay of natural gas users varies between regions and between user segments," explained Ratih.

"In addition, PGN is also present as a partner who will share the gain and the pain," he added.

When PGN can obtain LNG supply at a lower price, of course PGN will 'share the gain' by providing price adjustments to customers and commercial programs that provide added value for customers. But on the contrary, if PGN obtains supply at a relatively higher price, then PGN must of course take it into account in the selling price to customers even though it will still be taken into account the most competitive one," Ratih continued.

Competitive pricing for customers is one of PGN's commitments to maintain the sustainability of gas distribution for customers amid global energy challenges and especially related to geopolitical conditions in the middle east today that have an impact on world oil fluctuations.

PGN will continue to inform customers of developments and ensure customers get the right price signal and competitive gas prices, said Ratih.

No less important, PGN always adheres to applicable regulations. Because regulations are a balance to ensure that all natural gas service processes run in accordance with the principles of good, fair, and national interest-oriented governance.

Furthermore, PGN supports the government in order to ensure the guarantee of energy security, especially in the natural gas sector. For this reason, the synergy of all relevant stakeholders, both from the government side, upstream oil and gas industry, the infrastructure industry and the gas user industry, is the key to creating this energy independence and resilience.

Finally, as part of the Danantara formed by the Government to create value creation from the management of SOEs, the role of PGN is also expected to provide added value to the Government in managing the natural gas business chain.