Three Pertamina Gas Subholding Projects Reduce Emissions Of 5 Million Tons Per Year

Illustration of PT Pertamina (Persero)'s natural gas Subholding Gas facility. (PGN Doc)

JAKARTA - As many as three strategic subholding gas projects of PT Pertamina (Persero), PT PGN Tbk have the potential to reduce carbon emissions by up to five million tons of CO2 per year.

PGN's Director of Sales and Operations, Faris Azis said that his party is committed to strengthening gas supply and expanding natural gas infrastructure as a sustainable energy transition.

"This commitment also prioritizes low-emission development to support the government's program to achieve carbon neutrality by 2060," Faris said as quoted by Antara, Friday, June 10.

He said the three strategic PGN projects were regasification of power plants, gasification of refineries, and the household gas network (jargas).

"The three projects can reduce emissions by around five million tons of CO2 annually," he said.

These flagship projects will accelerate the transition from fossil fuels to clean energy from natural gas.

Faris detailed that most of the power plant regasification projects are located in eastern Indonesia.

Based on the Minister of Energy and Mineral Resources Decree No. 2 of 2022, power plant regasification is carried out in 33 locations with a total capacity of 1,198 MW and the use of natural gas is 83.74 BBTUD.

"Through the regasification project, which converts the use of fuel and coal to use natural gas to use electricity, PGN is optimistic that it will achieve net zero emission. If this regasification can be carried out in full, it will reduce emissions of 650,000 tons of CO2 per year," he explained.

According to Fariz, the refinery gasification project is running in Dumai, Plaju, Balongan, Cilacap, TPPI, Tuban, and Balikpapan.

"Hopefully we can realize these projects that provide multi-benefit, namely gas as clean energy can be present to replace fossil fuels. With a total of 560 BBTUD for refinery gasification, it can reduce carbon emissions to 4.3 million tons of CO2 per year," said Faris.

PGN's third strategic project is the use of natural gas in the household sector.

Until now, PGN has presented energy solutions that are sustainable, clean, and easy to access 24 hours a day on 750,000 gas connections in 17 provinces and 67 cities and regencies.

"The target through the government-business partnership (PPP) scheme is four million household connections by 2024. One million gas grids for the household sector can reduce carbon emissions by up to 60,000 CO2 annually. This program can also help the government reduce LPG imports. and reduce the cost of energy subsidies," he said.

PGN is also optimistic that the use of natural gas after the COVID-19 pandemic in Indonesia will increase.

"Natural gas is the cleanest fossil energy and is very appropriate to be used in the energy transition process," said Faris.