Integration And Aggregation Of LNG Infrastructure And Commodities, PGN Launches Domestic LNG Utilization Service For Industry

Photo: Doc. PGN

PT PGN Tbk is entering a new era in the Liquid Natural Gas (LNG) commodity service in the context of sustainable use of domestic natural gas. Beyond pipeline services will strengthen infrastructure integration as capital to serve all sectors of customers including Industry.

PGN received additional gas supply from LNG regasification results starting in May 2024. The market interest in LNG is quite good, as evidenced by industrial absorption in the early stages of 15 BBTUD and will continue to increase according to existing demand. The gas supply from this regasification can be distributed by PGN to existing customers and new customers.

Through LNG services, PGN also hopes to always support industrial and retail growth where the gas needs are large enough for operations. LNG can be a consideration for industry and retail, if there is an industrial gas need that is not met through pipeline gases. PGN's commitment is to continue to help meet the energy needs of the industrial sector, so that the industry is expected to continue to grow to provide a multiplier effect on the national economy.

"We hope that the entry of PGN in the LNG era can be one of the most feasible solutions to serve domestic market needs in the future. In addition, Indonesia's geographical character as an archipelagic country, this LNG distribution service is very possible to meet inter-island demand," said the Director of Sales and Operation Ratih Esti Prihatini, in a statement, Wednesday, May 22.

PGN wants to realize its commitment to expand the use of natural gas to new areas, especially in areas that have not yet received an infrastructure network or pipeline gas service.

"PGN understands Indonesia's geographical conditions, so there must be another model of natural gas distribution, namely beyond pipeline. So LNG is very feasible for sustainability and maintains supply reability," said Ratih.

For a long time, FSRU Lampung has also continued to run to serve the needs of LNG and gas from the results of the LNG FSRU Lampung regasification which was distributed to the electricity sector. The volume of distribution of LNG FSRU Lampung in the January - April 2024 period was 70,075 M3 on February 13, 2024, 134,006 M3 on March 12, 2024, and 133,990 M3 on April 18, 2024.

Then in collaboration with all stakeholders and to coincide with the 59th Anniversary of PGN on May 13, 2024, the gas from the LNG FSRU Lampung regasification began to be channeled to the industry where demand conditions were increasing.

FSRU Lampung has the capability to maintain reability and demand for gas needs. Together with the integrated infrastructure of the Sout Sumatra Eest Java (SSWJ) transmission pipeline, LNG processing at FSRU Lampung continues to increase in serving customer needs from year to year. In 2023, the average distribution of LNG FSRU Lampung is 54.07 BBTUD and throughout January April 2024 the average distribution of LNG FSRU Lampung is 56.03 BBTUD.

"PGN has disbursed gas from LNG regasification from the Lampung FSRU infrastructure which is integrated with the South Sumatra-West Java (SSWJ) Pipeline. When the supply conditions fluctuate, the Lampung FSRU and West Java FSRU become the backbone of service stability and supply points that are sourced from LNG," explained Ratih.

To strengthen LNG services in the future, PGN will add LNG facilities by building planned Hub infrastructure at several points including Aceh, Arun, and Bontang.

"As Pertamina's Gas Subholding, PGN strives optimally for the management and optimization of LNG to run properly. Not only to complement the availability and accessibility of energy in the country, LNG is a sustainable and environmentally friendly energy source during the transition to the Net Zero Emission Target in 2060," concluded Ratih.