PGN Gagas and Renikola Sign Cooperation Agreement for the Provision of Compressed Biomethane Gas
JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) through PT Gagas Energi Indonesia (PGN Gagas) signed a Heads of Agreement (HOA) with PT Renikola Primer Energi (Renikola) for cooperation in the provision of compressed biomethane gas (CBG) with a delivery point in North Sumatra.
This cooperation marks a strategic step in supporting the transition to green energy in Indonesia, especially in the North Sumatra region which has great potential for organic waste from the plantation and livestock sectors.
PGN's Strategy and Business Development Director, Mirza Mahendra, said the Gas Subholding's support to increase natural gas supplies, including those from renewable resources such as CBG.
"The signing of the HoA today is one of the tangible forms and commitments of the Gas Subholding regarding efforts to utilize gas supplies derived from renewable energy such as CBG," said Mirza, Tuesday, December 23.
CBG is an alternative energy produced from the biogas upgrading process, where methane gas from organic waste is purified to reach the quality equivalent to natural gas, then compressed to facilitate distribution and storage.
CBG has similar calorific value and properties to Compressed Natural Gas (CNG), so it can be used directly as fuel for the industrial, transportation, and household sectors.
PGN Gagas is committed to providing energy beyond the pipeline through various modes of distribution, including CBG, CNG, and LNG, to reach areas that are not yet covered by the gas pipeline network.
This commitment is in line with the government's vision in encouraging a green energy transition and ensuring reliable, affordable, and sustainable energy availability for all Indonesian people.
The signing of this HOA is the first step for PGN Gagas and Renikola to build CBG infrastructure, conduct feasibility studies, and prepare an efficient and sustainable distribution ecosystem.
This cooperation is expected to encourage the development of renewable energy, support government policies in energy transition, and make a real contribution to environmental sustainability and the welfare of local communities.
PGN President Director Gagas Santiaji Gunawan revealed that in addition to being environmentally friendly, safe and efficient, CBG is an opportunity for a new supply source for PGN Gagas to support the circular economy.
"Circular economic support can be felt through the use of organic waste into CBG which provides economic added value for farmers and plantation industries, as well as opening environmentally friendly jobs," explained Santiaji.