Pertamina Gas Subholding Starts Building Distribution Pipelines To The Mangkang - KIK Kendal Section

Photo: Doc. PGN

JAKARTA - Pertamina Gas Subholding, PT PGN Tbk, has started building a pipeline for natural gas distribution from Mangkang to the Kendal Industrial Estate (KIK) by carrying out the first welding or first welding of distribution pipes to KI Kendal on Tuesday, December 6.

The construction of this pipeline also continues the utilization of Cirebon - Semarang Transmission Pipes (Pipa Cisem), as well as a tangible manifestation of PGN in developing natural gas utilization in the areas of Semarang, Kendal, Batang, and surrounding areas.

The distribution pipe from the 8 km Cisem Pipe, with a diameter of 8 Inch with a gas transportation capacity of 13 MMSCFD. Similar to the distribution of natural gas to KIT Batang, natural gas for KI Kendal comes from the PEPC Jambaran Tiung Biru (PEPC JTB).

In the early stages, natural gas in KI Kendal has the potential to be absorbed by 7 industrial customers with a need of approximately 3.4 - 4 BBTUD.

The ceremonial was attended by the Deputy for Regional Development and Spatial Planning Coordination of the Coordinating Ministry for Economic Affairs Wahyu Utomo, Plt. Assistant Deputy for Mining Oil and Gas and Petrochemical Coordinator for the Sunandar Economy, Director General of Oil and Gas represented by the Coordinator of Development Planning Agung Kuswardono, the Governor of Java represented by the Head of the Central Java Province Energy and Mineral Resources Office, Sujarwanto Dwiatmoko, representatives of the Mayor of Semarang, and the Regent of Kendal, as well as the Director of Infrastructure and Technology of PGN Achmad Muchtasyar, President Director of PT JPEN Muhammad Iqbal, and the Representative Director of PT Jasamarga.

Wahyu Utomo revealed that KI Kendal entered the National Strategic Project (PSN) and PSN is expected to be completed in the first semester of 2024. This will be in line with the construction of a natural gas transmission and distribution network.

"There is already strong coordination between the Cisem pipeline and the distribution pipeline by PGN which directly enters industrial areas. The development of this gas infrastructure will increase competitiveness in the industrial sector, especially Central Java," Wahyu said in a written statement.

Sujarwanto Dwiatmoko, said that the gas energy source for Central Java is very large and the Cirebon - Semarang (Cisem) pipeline has the potential to meet the needs of various developing Industrial Estates such as Kendal, Wijaya Kusuma, KIT Batang, and KI Brebes. Gas needs in industrial areas are predicted to develop more rapidly after infrastructure development.

"In 2027, it is estimated that the KIT Batang 79 MMSCFD will be absorbed for all clusters covering an area of 3100 ha. The scheme to be used includes CNG Trucking for consumers far from the pipeline. Then, the development of the Gresik Semarang gas pipeline, which will be continued with distribution pipes to industrial and household customers. Phase 1 has been built for the Semarang-Batang segment which is targeted to be completed in 2023. KI Kendal and KIT Batang will be ready to absorb gas supplies in Central Java," said Sujarwanto in his remarks.

"The construction of this distribution pipeline is a synergy between the government and BUMN for energy availability. In addition, the distribution pipeline built by PGN can optimize the utilization of the Cisem Pipe. Not only industry, the area through which gas pipelines enter the criteria as a city that can be built. In Semarang it is quite massive and also built by PGN," added Agung Kuswardono.

Not only industrial areas, PGN is also ready to serve gas needs in Central Java and DIY by 20 - 40 MMSCFD for all customer segments. In parallel, PGN prepares infrastructure development both pipelined and non-pipelined. PGN will take the fastest option so that the needs of all customers can be served properly.

"Infrastructure in the Central Java - DIY area can also serve customers other than industry, such as MSMEs or households. Throughout Mangkang to Tambak Aji, PGN has conducted a survey for non-industrial customers in order to optimize natural gas absorption for the MSME sector and small customers around 200 customers, as well as households according to the market survey of 5000 potential customers with natural gas needs of around 2 MMSCFD," explained PGN Infrastructure and Technology Director Achmad Muchtasyar.

"Distribution pipes to KI Kendal will complement infrastructure in industrial areas, in particular to meet the efficient and environmentally friendly natural gas needs in the largest industrial city development area in Central Java. Not only for industry, PGN will in the future expand natural gas development to target household commercial needs, and transportation," said Achmad.

Infrastructure development will start from the Mangkang area, as well as to develop the Mangkang SPBG. Then gradually, a distribution pipeline will be built that is integrated with KI Kendal and other industrial areas.

According to Achmad, PGN has again gained momentum to embed the milestone of providing supporting infrastructure for industrial estates. At the same time following up on President Joko Widodo's directives, where the Indonesian government will guarantee the availability of infrastructure, one of which is gas for KI Kendal.

Achmad hopes that the use of natural gas in KI Kendal will have a real positive effect in efforts to bring investment into Indonesia. PGN will continue to develop in Kendal, Mangkang, and surrounding areas. Gradually, it will help Central Java become a natural gas Hub.

With the support of the government and all stakeholders, PGN is optimistic that natural gas infrastructure and its supply guarantees can support economic growth and the welfare of the surrounding community.

"We, PGN, want to provide natural gas and infrastructure as vital components in the development of an industrial area. When the gas has flowed later, hopefully, it can grow Central Java's economy through new industries in industrial areas," concluded Achmad.