PGN Gas Distribution Volume To Central Java Industry & Commercial Increases 1,000 Percent, Thanks To Pipe Infrastructure Integration

Photo: Doc. PGN

PT PGN Tbk as Pertamina Gas Subholding continues to optimize the use of natural gas through the integration of natural gas distribution pipelines in Central Java, in line with the development of Cirebon-Semarang I (Pipa Cisem) Transmission Pipelines, and Gresik-Semarang Transmission Pipelines (Pipa Gresem).

This integration has resulted in an increase in natural gas distribution, especially for existing industries and commercials from a volume of 300,000 M3 per month in early 2022 to 3 million M3 per month or a significant increase of around 1,000 percent.

PGN's Commercial Director, Ratih Esti Prihatini explained that the volume of natural gas from pipeline integration is distributed to industrial, commercial and power plants in the areas of Semarang, Demak, Kendal, and Batang cities. Some of the large industries currently using the gas include PT Indofood Fortuna Makmur, PT Aroma Kopi Krim and PT Rumah Keramik Indonesia.

"PGN will continue to optimize natural gas and infrastructure management, especially in integration and aggregation to optimize the use of natural gas, because this will be a driving factor for the growth of natural gas absorption. Of course, we hope that not only the existing industry but also new customers around the infrastructure that has been integrated," said Ratih, Tuesday, June 11.

Optimization of downstream gas utilization and infrastructure integration is carried out by PGN by developing a pipeline network for the distribution of natural gas in Central Java. The total distribution pipeline that has been built now is 1034 km.

According to Ratih, PGN Distribution Pipes that have been integrated with Cisem and Gresem Pipes will also provide flexibility in bringing in supplies from several sources. Furthermore, PGN can aggregate potential customers.

In 2024, PGN will continue to strive to complete infrastructure completions to prospective customers who have contracted including PT KCC Glass Indonesia in Batang with a gas volume requirement of 8 BBTUD. Several other factories are located in Kendal and Mangkang such as LBM, BTR, Matahari Tire Indonesia and Sango Ceramic with an initial volume potential of around 3 BBTUD in 2024.

"Thus, the total projected optimization of gas distribution through Gresem-Cisem Pipes at the end of this year is around 14 BBTUD or around 14 million M3 per month," concluded Ratih.