How PGN Faces The Challenges Of Optimizing Natural Gas Utilization In The Transition Period

Photo: Doc. PGN

JAKARTA - PT PGN Tbk as Pertamina's Gas Subholding continues to support increased natural gas utilization and synergy in managing the entire natural gas business chain from upstream to downstream during the energy transition with the mission Connecting Clean Energy for Sustainable Growth. To answer this challenge, PGN applies the principle of balance of the Three Pillars (Trilema) Energy, as well as so that efforts to optimize natural gas utilization can be realized in the field and the role of natural gas as the transition energy towards the Net Zero Emission target in 2060 can be realized.

The Energy Trilema includes Energy Security (Secure&relable), Energy Equity (Affordable& Available), and Environmental Sustainability (Green&Clean).

PGN's Director of Strategy and Business Development, Rosa Permata Sari, explained that in an effort to maintain Energy Security, PGN is optimistic that it can play an active role in maintaining energy security, especially in the use of natural gas. By owning a natural gas infrastructure network of more than 31 thousand km and 4 LNG terminals, PGN plays an important role as the manager of the largest natural gas infrastructure network in Indonesia.

This network is expected to ensure reliable and interconnected natural gas supply in various parts of Indonesia. In the future, PGN sees considerable supply potential in various regions, including North Sumatra, Sulawesi, East Kalimantan, and Papua.

PGN ensures that domestic energy supply distributed can reach a large area but with effective and efficient services. PGN will also continue to develop energy infrastructure to meet the needs of today and the future, where the potential for natural gas supply is dominated by the Liquified Natural Gas (LNG) type," said Rosa, Sunday, February 18.

In principle of Energy Equity, PGN seeks to create easy access and affordability of natural gas supply for the community at affordable prices. When compared to other energies, natural gas prices are more affordable. PGN provides natural gas with services ranging from US$6 - 13.87 per MMBTU. The price is still below RON 90 (Pertalite) of 17.3 US dollars, LPG 12 KG of US$ 26.20, and HSD of 41.18 US dollars.

Environmental Sustainability, PGN is watching the current and future emission reduction targets that are of concern to the world. So PGN wants to create the use of natural gas energy, including LNG, as the main choice.

This is considering that natural gas is relatively more environmentally friendly energy with the lowest level of carbon emissions compared to coal and other fuel fossils. Natural gas carbon emissions amounted to 59 KG CO2 per MMBTU, much lower than LPG (66 KG CO2 per MMBTU), Gasoline (72 KG CO2 per MMBTU), Petroleum (77 KG CO2 per MMBTU) and Batu Bara (98 KG CO2 per MMBTU).

According to Rosa, optimizing natural gas utilization during the energy transition period is important for energy security. Oil production continues to decline, pipeline gas also continues to decline, while energy consumption day by day increases which ultimately has the potential to have an impact on increasing imports and trade balance deficits. Therefore, it is necessary to utilize alternative energy sources to reduce fuel dependence and imports.

Natural gas can be an alternative energy solution, because natural gas reserves in Indonesia and the world are more than oil reserves.

From the economic aspect it will be more profitable. In addition, planning for utilization in the longer term is important to implement. We cannot run alone as a business entity in the midstream and downstream sectors. We need intensive synergy and communication as well as mutual cooperation of all stakeholders for the estuary of public services for transparent and reliable energy services," said Rosa.

With abundant amounts of gas sources, in addition to being channeled to existing customer sectors that have been served, such as Electricity, Industry, Land Transportation, MSMEs, Commercial and Household, the utilization of natural gas can be extended to gas users whose needs are large quantities such as sea & land logistics transportation, references, lifting oil, and power generation. It is hoped that with the expansion and increase in the volume of domestic natural gas utilization, the multiplier effect felt by the community and the state will also be more optimum.

"Synergy between the government and oil and gas business entities has a very crucial contribution, so that the chain of management of natural gas utilization is sustainable and has a positive impact in the long term," concluded Rosa.