PGN's Continuous Commitment To Supply Natural Gas For Sustainable Electricity

PGN Commercial Director Ratih Esti Prihatini. (IST)

JAKARTA - PT PGN Tbk is committed to providing natural gas supply to meet the electricity sector continuously. The electricity sector is a fairly dominant customer segment of PGN's total national natural gas trading. In terms of driving demand growth, the industrial sector becomes the largest user, followed by the electricity sector.

"We continue to maintain natural gas distribution for the electricity sector, because it relates to the benefits of the wider community. In addition, natural gas plants have more value. Considering that natural gas is fuel that is more environmentally friendly than fuel oil or coal," said PGN Commercial Director Ratih Esti Prihatini, September 27.

Ratih added that the strategic partnership between PGN and PLN continues. This is a form of PGN's commitment to provide reliability in gas supply so that PLN can optimally meet the electricity needs of the community.

In addition, PGN manages and operates the very essential Lampung FSRU to meet the needs of the electricity sector and industry using natural gas as a result of the Liquefied Natural Gas (LNG) regasification. FSRU Lampung is integrated with the South Sumatra-West Java Pipeline (SSWJ) as part of the service stability backbone and LNG supply point enabler.

The energy transition initiative towards the Net Zero Emission target in 2060 will also expand to the electricity sector as one of the largest demands. Referring to the Bappenas document regarding the stages of the energy transition, it shows the importance of using natural gas in the era of its main energy transition in 2025 2029. A number of national initiatives will be developed in line with technological developments and regulatory landscapes, one of which is the limitation of coal power plants. So natural gas can play a role in filling changes in future energy supply.

PGN will continue to develop gasification programs in a number of strategic sectors that convert natural gas-based energy including the national electricity sector.

For its role in fulfilling energy for the electricity sector, PGN was rewarded with the Indonesian Electricity Honorary Award on Thursday, (27/9/2024). PGN received an honorary sign in the Manufacturer/Efficient Supplier category for its Commitment to Encouraging Gas Utilization in Power Plants.

PGN will continue to maintain the reliability of natural gas supply and infrastructure in order to increase the confidence of natural gas users, including from the electricity sector which requires business and investment sustainability. Increasing use of natural gas in the electricity sector will also provide a multiplier effect for the national economy and contribute to reducing carbon emissions," concluded Ratih. (ADV)