PGN Plays An Important Role In Distributing Natural Gas To Customers Fairly

Illustration. (Photo: Doc. Antara)

JAKARTA - PT PGN Tbk plays a role in distributing natural gas volume to customers fairly and providing mutual benefits. The volume of natural gas distributed by PGN is the result of purchases from suppliers who carry out production activities in various gas wells.

PGN Corporate Secretary Rachmat Hutama said that currently, the condition of several natural gas productions contracted with PGN has decreased production due to various conditions on the upstream side, ranging from the natural decline in oil and gas well production and repair and maintenance of wells, both periodic and unplanned.

With the current condition of natural decline gas supply or other conditions that occur on the upstream side, PGN makes the decision to quota gas volume for all customers for the realization of gas networks and the safety of high risk gas networks.

PGN seeks to serve customers' needs as optimally as possible. But with the declining condition of gas supply, we as gas distributors on the downstream side are trying to make gas distribution fair to all customers. We avoid that the efforts made are not only for the benefit of one or two customer sectors and at the expense of all interests to customers," explained Rachmat, Thursday, May 2.

In addition to equitable distribution of natural gas, PGN also pays special attention to the security of gas networks to avoid unwanted incidents. If this is not the case, then the responsibility and risk will be greater for the overall distribution of natural gas to all customers.

"We really avoid taking sides with the interests of certain parties and this unreliable natural gas network. Therefore, we ask for assistance and cooperation from all customers to be able to comply with existing provisions to maintain the safety of gas distribution to all customers. This is our main concern for gas distribution to run safely and reliably," added Rachmat.

In addition, the interests of other customers also have the same right to get volume in accordance with the availability of existing supplies, which currently have a declining gas supply.

We cannot only prioritize one or several customers. This distribution of fair energy can encourage supply chain reabilities and natural gas utilization on the domestic downstream side which has a multiplier effect for the national economy," he said.

In accordance with all the information that has been submitted to customers, including customer meetings that have been held at the beginning and end of March 2024 together with PGN management, the current shortage of natural gas supply has been offered by LNG alternatives as its substitution or the most feasible solution for customers.

The volume provided follows existing requests from customers with commercial aspects and follows pricing regulations that have been formulated by regulators, including the dynamics of the latest global energy price conditions.

"Therefore, it is important to maintain the realizability of services, maintain the security of natural gas networks and distribute natural gas to all customers fairly to all supplies received by PGN from suppliers. From the upstream side, regulators and PGN as distributors are trying to do their best to provide natural gas volume to domestic consumers," said Rachmat.

At this time, PGN is also trying to meet the natural gas needs of all customer segments by providing Liquefied Natural Gas (LNG) solutions. The efforts made include utilizing the LNG supply allocation launched by SKK Migas and will launch a number of LNG cargoes in May 2024 which PGN brought in to maintain the need for industrial gas supply in the midst of the current national natural gas production situation and industrial needs that must always be met.

The role of PGN as the distributor of natural gas volume also complied with the government's stipulation, namely Kepmen 91K Number 2023 and a contract with suppliers, so that PGN's role as a volume carrier to end users while still considering the reliability and security of infrastructure networks in accordance with the volume available from suppliers and conditions this is known to the regulator.

Currently, all stakeholders of the natural gas business chain are trying to increase national natural gas production through new investments in new wells that have produced and new exploration activities. It only takes time and commercialization.