PGN Integrates Natural Gas Infrastructure Management

Illustration (Photo: Doc Antara)

PT PGN Tbk conducts development of natural gas utilization through integration of infrastructure management, both pipeline and beyond pipeline and natural gas commodities, to be able to answer challenges in the downstream sector of natural gas.

PGN Group Head Gas and LNG Supply Muhammad Anas Pradipta said that the integration of infrastructure management and gas commodities will provide stronger reliability, flexibility and affordability of market centers interconnections.

"With this integration, we are ready to make adjustments in terms of operating patterns so that natural gas services can be more flexible, then from the market side it can be easier to get supply certainty. This year, LNG product introduction and beyond pipeline services into the existing market PGN will become an enabler for quick win according to the dynamics that occurred in supply conditions, demand and the gas business environment," said Anas, quoted on Wednesday, August 21.

Anas continued, the fulfillment of natural gas for Sumatra to Java will be more sustainable in the future through the integration of transmission pipes.

While seeing the geographical challenges and availability of the existing LNG terminal, PGN is designing a small scale LNG.

The LNG mode of transportation can provide natural gas needs for existing market centers. Indeed, the challenges that exist are the conditions of demand that are spread, so this is a challenge in terms of supply of chains. But we will still do it as a solution for gas distribution in central and eastern Indonesia," explained Anas.

One of the LNG infrastructure development, one of which is LNG Hub, is also aimed at answering the challenge of supply supply & demand. LNG Hub will become a key enabler in strengthening reliability & availability of natural gas distribution as energy transition.

The LNG infrastructure currently owned by PGN throughout Indonesia includes 240 MSRU Lampung MMSCFD, 500 MMSCFD FSRU, RT LNG in Lhokseumawe Aceh amounting to 400 MMSCFD and LNG Lamong amounting to 25-30 BBTUD.

LNG Hub planning located in Arun which is located on an international trade route is an asset optimization and is in accordance with the strategic plan to adjust the potential for future oil and gas field development. Through Perta Arun Gas, currently PGN is revitalizing 1 LNG tank unit and is expected to be operational in 2025.

PGN also plans to develop LNG Bunkering in several locations such as Arun, Tanjung Priok and Bontang. The target in the short term is bunkering in Bontang which can serve LNG Fueled Vessel with a capacity of 1,000 to 15,000 M3 on the shipping route via the Makassar Strait to Australia with an efficiency of 2 to 3 days with a COD target in 2026.

In addition to building an LNG Hub, the mechanism to overcome supply & demand coverage is through the development of retail businesses with CNG and LNG modes based on the customer category (Volume) as well as the distance between supply locations and customer demand.

Next is the mapping of gas stations in all parts of Indonesia (24 SPBG units belonging to PGN and Pertamina) with potential customer needs throughout Indonesia (15.5 BBTUD) that can be served using CNG.

CNG services and retail market penetration are also very likely to use Cylinder tubes with a capacity of 24 m3 per tube.

The gas demand projection for 0.5 BBTUD requires 1,320 tubes. As for the LNG supply chain using isotanks. Currently, it has been run in Bontang by PT Pertagas Niaga.

"PGN's gas management has so far been almost 60 percent for the industry. If Quick Win PGN's efforts are synergistic and can become a blueprint planning orchestra for national natural gas service stakeholders, we are confident and committed that expanding access to natural gas by making industrial areas an anchor for natural gas absorption can produce a significant multiplier effect for the national economy," he concluded.