PGN Is Ready To Expand Infrastructure And Utilize National Natural Gas

Jakarta - PT Perusahaan Gas Negara Tbk (PGN) as part of PT Pertamina's Oil and Gas Holding and plays a role as Sub Holding Gas which manages nearly 96% of natural gas downstream infrastructure with a commercial market share of 92%, has entered its 55th year.

Infrastructure development and utilization of natural gas for the welfare of the Indonesian people have been carried out massively, even though these efforts require a long time.

Now PGN has managed a pipe length of ± 10,000 KM. From this infrastructure, PGN distributed natural gas in the amount of 3000 BBTUD to ± 2,475 industrial commercial customers and power plants and 1,566 small customers.

PGN also supplies gas to more than 390,000 household customers built with APBN funds and PGN's independent investment, as well as 12 Gas Refueling Stations (SPBG) and 4 Mobile Refueling Units (MRU). In addition, PGN also manages upstream businesses of more than 28,200 BOEPD. PGN's customers are spread across 59 districts / cities in Indonesia in 17 provinces.

President Director of PGN, Gigih Prakoso said that as a Sub Holding Gas, PGN will continue to make initiatives and breakthroughs to expand the use of natural gas to various segments through the development of various natural gas infrastructures in order to play the role of agent of development to increase utilization and meet domestic demand for natural gas.

"At this mature age, PGN will optimize supply, infrastructure, and market management throughout Indonesia, the region and the international market so that it will increase the utilization of natural gas for the national interest. In addition, PGN is expected to be able to supply gas at a competitive price at a competitive price. continue to pay attention to the sustainability of the natural gas supply business, "Gigih said in an official broadcast, Wednesday, May 13.

PGN has the opportunity to develop new businesses. Thus, the hope is that it can further increase the volume of gas which leads to compensation for carrying out government assignments in the context of the national energy mix.

Gigih also revealed that Indonesia's annual gas consumption rate is 39.0 billion cubic meters, but is still far below Indonesia's natural gas production capacity of 73.2 billion cubic meters.

According to SKK Migas data (2018), the current contribution of national gas production is an average of 64.21% of national oil and gas production. For domestic needs, 3,995 Bbtud (59.95%) of gas has been distributed and 2,669 Bbtud (40.05%) of gas has been distributed.

"There is still room for the utilization of natural gas which can be done through infrastructure development and natural gas development in new areas in the framework of equitable access, so as to encourage national economic growth," said Gigih.

Furthermore, PGN is committed to the success of various government programs related to natural gas, such as the PLN power plant gasification program, Pertamina refinery gasification, transportation, and gas supply for industrial estate development, where realizing this program requires a very large investment.

In the National Medium Term Development Plan (RPJMN) 2020-2024, there is a major project in the form of a natural gas pipeline infrastructure development with a pipe length of more than 2,200 km. The addition of the transmission pipeline infrastructure will stimulate the opening of new areas which in turn will increase the use of domestic natural gas to boost national economic growth.

In addition, it is also targeted that there will be an accumulation of an additional 4 million household connections. PGN is committed to continuing to carry out government programs on Jargas development, considering that Jargas is a priority program considering the positive impacts it has on society and the country.

"PGN is pursuing the target of completing the state budget household gas line. Related to the PPP program for Jargas, currently the program has entered the stage of further study by the Ministry of Finance and the Ministry of Energy and Mineral Resources and is planned to be realized in the next few years, "said Gigih.

Gigih emphasized that PGN is always ready to go through challenge after challenge for the sake of resilience, independence and national energy sovereignty in a dynamic era.

“This birthday celebration is 'special' because it is currently in an unexpected moment, namely COVID-19 which has had a significant impact on company performance. However, we still have great motivation to continue with infrastructure development projects and natural gas services for all customer sectors while still prioritizing safety and efficiency, "said Rachmt.

"In addition, as part of BUMN, PGN always supports the Government in implementing the prevailing laws and regulations and PGN is ready to carry out the assignments given by the Government. However, in carrying out this assignment, we still have to consider the economy and the sustainability of the company's business, "explained Rachmat.

With healthy capabilities and performance, PGN's future resources and efforts will be focused on achieving the target of utilization and the portion of natural gas in the national energy mix as mandated by the Government through the National Energy Policy (KEN), where gas has more than doubled and contributed significantly. of 22% in the national energy mix by 2025.