PGN Increase Domestic Gas Distribution In This Way

Natural gas (intermediate)

JAKARTA - PT PGN Tbk maintains the safety of supply carried out by PGN through infrastructure integration and strategic projects prepared to focus on efficiency and logistics cost effectiveness of natural gas distribution.

PGN's Director of Strategy and Business Development Rosa Permata Sari said PGN continues to develop the core business that is already inherent in PGN related to the development of natural gas transmission and distribution projects.

So the natural gas pipeline project and the development of beyond pipeline infrastructure and supporting infrastructure are the focus of development in PGN. Natural gas users will also get affordable access if natural gas infrastructure is growing in various regions.

According to him, PGN will be involved in a number of strategic projects including the WNTS-Pemping gas pipeline project to distribute gas from Natuna Square to the domestic market. PGN also welcomes the completion of the Cirebon Semarang phase II gas network project and will synergize with the government to bring gas from East Java to West Java.

"There is a new business initiative for the development of the Cisem II Pipeline where we will build a Cilacap Tegal Distribution Pipeline towards Refinery Unit IV Cilacap for approximately 130 km," Rosa said in a statement to the media, Thursday, July 11.

Another development is the gas infrastructure project at the Tuban refinery and the construction of pipeline infrastructure to support fertilizer factories in Eastern Indonesia. Not only in Java, pipeline interconnection that will be run is Dumai - Sei Mangke Pipes through Government support with the APBN, Duri Balam Pipes, Duri Petapahan, Balikpapan Bangkanai Pipes and Bintuni Fakfak Pipes. In these ways, it is hoped that it can close the gap in supply sources caused by the unconnected pipeline infrastructure.

PGN is committed to maintaining supply security using infrastructure integration. On the other hand, we are preparing an adaptive development of strategic projects to fill future business opportunities. Of course, taking into account the logistics scheme is appropriate and efficient," said Rosa.

In line with the regasification assignment to Pertamina, what PGN is carrying out today is in line with PGN's efforts to strengthen and integrate the use of pipeline gas infrastructure and beyond pipelines.

With the projected future natural gas supply which will be dominated in the form of LNG in accordance with Indonesia's geographical conditions, PGN continues to strengthen LNG infrastructure or beyond pipeline modes in order to contribute to balancing domestic natural gas supply and demand.

One of them is for now, PGN is revitalizing the LNG Hub Arun Tank. This terminal is located on a strategic trade route close to the LNG market for Southeast Asia and South Asia.

Pertamina as the Oil and Gas Holding has aspirations to develop the LNG Arun terminal into an LNG Hub Leader in Asia. One of the stages initially PGN started with revitalizing again in one of the tanks, namely F6004 since the end of 2023 and is targeted for completion by the end of 2024," explained Rosa.

The role of FSRU Lampung so far is also very essential for Pertamina Gas Subholding which is integrated with the South Sumatra-West Java (SSWJ) Pipeline.

Now the results of LNG's regasification at FSRU Lampung are channeled to meet the needs of the electricity sector and industry whose demand conditions are increasing. In addition to FSRU Lampung, West Java FSRU has become a backbone of service stability and LNG supply point enablers when gas supply conditions fluctuate.

Considering Indonesia's geographical condition as an archipelagic country, the beyond pipeline (shipping) scheme is also a feasible step for Eastern Indonesia.

Then to at the same time encourage LNG commercialization, PGN entered the LNG Trading business and added LNG facilities including Bontang LNG Bunkering, Lamong LNG Bay, and Bunkering LNG Terminal for the Marine Fuel sector.

PGN's efforts, both pipeline and beyond pipeline, require synergies that are in line with the interests of all stakeholders, governments and natural gas users on the downstream side. With optimism facing dynamic challenges, supply and demand balance is expected to occur in 2030. PGN also encourages new users to continue to grow, "concluded Rosa.