PGN Targets Opportunities For The Utilization Of Andaman Gas At The IAF Event

The R-2 Exploration Well, which is located off the west coast of Aceh, has been successfully discovered by PT Pertamina Hulu Energi (PHE) as Pertamina's Upstream Subholding. (ANTARA/HO-PHE)

JAKARTA PT Perusahaan Gas Negara Tbk or PGN as Pertamina Gas Subholding is eyeing opportunities for natural gas utilization from the Andaman Block, Aceh. The goal is to optimize domestic gas.

PGN's Director of Strategy and Business Development First Rosa Sari admitted that her party had the opportunity to cooperate to optimize the potential for natural gas supply from the Andaman Block, from the 2024 Indonesia-Africa Forum (IAF), in Bali.

"So in addition to international cooperation opportunities for the development of low carbon business, PGN also gets cooperation in order to increase domestic energy security," he said in an official statement, Sunday, September 8.

Rosa admitted that her party is looking forward to the potential supply from the Andaman Block to meet various demand. The potential supply from the Andaman Block ranges from 2 to 5.5 TCF.

"With the planned construction of the Dumai-Sei Mangke Pipe (APBN funds), the gas pipeline infrastructure in Sumatra will be more integrated to utilize Andaman gas. For PGN, Dumai-Sei Mangke Pipes will increase the flexibility of natural gas distribution to potential demand," he explained.

Rosa said that some potential demand lies in the northern and central parts of Sumatra, including power plants, fertilizers and smelters, refineries and industries. There is potential for the development of new plants, including blue ammonia, a smelter belonging to Inalum, RU Dumai, and methanol.

"So the need for natural gas is projected to increase," he said.

In addition, continued Rosa, with the presence of the Andaman Block which is close to Aceh, there is potential for the utilization of the Arun facility. The grandson of PGN's company, PT Perta Arun Gas (PAG), has conducted an initial study for the potential utilization of 2 LNG Arun Trains.

Rosa said the two trains were train 4 and train 5 with an estimated EPC duration of 30 months. Both PGN and PAG will continue to confirm the composition of the gas to be evaluated further.

"In the near future, we will conduct intensive discussions regarding the rendana for the use of Andaman's gas potential. In the discussion, it will also be explained about the estimated volume and long term of gas production based on the current conditions," said Rosa.

Furthermore, Rosa also hopes that the use of natural gas potential from the Andaman Block, Aceh can be realized.

"The gas potential from Andaman is actually also related to PGN's need in the midst of declining conditions in several existing pipe gas wells, due to entering the natural decline phase," he said.