Natural Gas Infrastructure And The Role Of PGN Is Important To Strengthen National Energy Resilience

Photo: Doc. PGN

Energy security or energy security is the main focus of every country in the midst of global dynamics affected by geopolitical turmoil. In addition to securing domestic energy, Indonesia is also in the energy transition period so that there is no concern so that existing dynamics does not have a significant impact on energy transition efforts. PGN as Pertamina's Gas Subholding is committed to being able to play an optimal role in this matter.

In the Energy & Economic Outlook Gasfest 2024 session, SKK Migas highlighted that the development of the natural gas market is increasing to secure Indonesia from energy voltility, and can be balanced with efforts by SKK Migas together with K3S to maintain investment interest in the upstream oil and gas sector. So PGN support is needed to expand the market so that gas is absorbed more.

"After natural gas infrastructure is available, PGN can bring natural gas from East Java to West Java which really needs gas. The role of PGN is also needed in accelerating the WNTS-Pemping infrared to bring gas from Natuna to the domestic market," said Rayendra Siddik as Head of Oil and Gas Comercialization Division SKK Migas, in his statement, Sunday, May 26.

The attention of SKK Migas to domestic energy needs is in line with Pertamina's commitment to national energy security and reducing imports. Representing Pertamina, Director of Logistics & Infrastructure Pertamina Alfian Nasution hopes that PGN as Pertamina Gas Subholding can increase its contribution through developing household gas for LPG imports and collaborating with other subholdings for energy security.

"How to reduce LPG imports by adding natural gas use in agriculture, including households and industry. We hope for government support to build more jargas," added PGN President Commissioner Amien Sunaryadi.

The role of gas is also a challenge for Pertamina during the transition period as well as filling out Pertamina's low carbon strategy. Several power plants in refinery or upstream are planned to use gas, so PGN has a major role in gas availability.

The fossil energy will peak in 2030, it is predicted that NRE, such as the solar wind of biofuel, will have 40-45 percent of the total energy needs. However, the need for gas continues to increase, so that it becomes a great potential for PGN in working on the energy transition," said Alfian.

Support from various parties adds meaningful input for PGN. Especially in anticipation of macro and global developments related to fossil energy, especially gas during the current acquisition period.

"For that, we are committed to connecting infrastructure. The eastern region has absolutely no pipeline, so there must be another model, namely Beyond pipeline. PGN will always carry out gas distribution and maintain reability," welcomed PGN President Director Arief Setiawan Handoko.

PGN also sees that in the context of natural gas infrastructure in Eastern Indonesia, more Scheming logistics are needed. One of them is by shipping to be able to move to support a more sustainable energy transition, especially since Indonesia is in a geographical condition of Indonesia as an archipelagic country.

Opportunities for the use of natural gas during the transition period will take PGN by integrating existing infrastructure to further develop. With integration, it will be able to meet the demand-demand needs in new cities, industrial areas, transportation through CNG and sea transportation. In addition, pursuing agreation by meeting natural gas needs in Pertamina's electricity supply, refinery, and other anchor buyers sectors.

Mangesh Patankar, Vice President of Gas and LNG Consulting Wood Macach revealed that each country has its own scheme in securing its energy. The aspect of the affordability of a country's energy plays an important and critical role, because this aspect also determines how each country moves to achieve the Net Zero Emission target.

"In the end, how energy mix can be balanced with the existing energy affordability," said Mangesh.