PGN Invites Investors And Analysts To Visit Gas Operations In Central Java

Photo: Doc. Antara

PT PGN Tbk invites investors and stock analysts to visit the natural gas operations of the company coded PGAS in Central Java.

PGN President Director Arief Setiawan Handoko in his statement in Jakarta, Monday, said that his party continues to maintain its integrity in national natural gas management.

"Infrastructure integration continues so that natural gas monetization can take place comprehensively, one of which is in the Central Java region," he said, quoted from Antara, Tuesday, October 1.

During his visit on Thursday, September 26, PGN also invited investors and stock analysts to know the prospects and potential of PGN's business, as Pertamina's Gas Subholding.

Several strategic locations visited include the Semarang Area Office, ORF Tambak Rejo, and Batang Integrated Industrial Zone (KIT Batang).

"Through this visit, we invite investors and analysts to see firsthand how PGN operates and is committed to maintaining high standards in every aspect of business. We also want to ensure that investors and analysts get the latest information about PGN's business development and strategy to face challenges and take advantage of opportunities in the oil and gas industry," said Arief.

One of the investors who attended, Lo Kheng Hong admitted that the visit to Semarang was useful.

"We, as PGAS investors, know about the Cisem 1 pipeline and we can also get an explanation of the latest things that are ongoing at the company," he said.

He hopes that PGAS can continue to grow, as well as its profit and share price will continue to increase and benefit the nation and state.

Arief continued that investors and analysts had the opportunity to see part of the Grow pillar, namely how PGN developed and integrated gas infrastructure to meet its demand and continued growth in Central Java.

"PGN's market continues to grow and Central Java is one of the growth centers in the SOR 3 area. Along with the aggressiveness of our infrastructure development, the direction of the PGN market in SOR 3 also focuses on industrial areas," added PGN Commercial Director Ratih Esti Prihatini.

The construction of the Gresik-Semarang natural gas infrastructure that connects East Java and Central Java has been completed by PT Pertagas and operates to meet the needs of Tambak Lorok and industrial power plants in the Semarang-Demak corridor.

Meanwhile, the Cirebon-Semarang (Cisem) Phase I transmission pipeline built by the government and operated by Pertagas has been operating since August 2023.

From the Cisem backbone pipe, PGN distributes gas through distribution pipes to customers in the Kendal Industrial Estate, Batang Integrated Industrial Estate, Tambak Aji Industrial Estate, and Semarang Wijayakusuma Industrial Estate.

Currently, the total volume contracted with 28 consumers along the Cisem 1 pipeline is 13.4 BBTUD or the equivalent of 11.2 million m3/month.

The number of tenants in the industrial area will continue to grow, so that natural gas absorption also has the potential to grow.

With gas supply sources from Jambaran Tiung Biru, the distribution of Cisem 1 pipeline and ORF Tambak Rejo is also for small customers, hotels, hospitals, MSMEs, and households in Semarang-Batang.

Later, if the Cisem 2 pipe is completed, then the gas needs in West Java can be met from East Java.

PGN is also developing a CNG cluster to serve households in Sleman, Yogyakarta.

The number of PGN customers in the Sales & Operation Region 3 (SOR 3) area is currently recorded at 203,754 in the household sector, 431 small customers and 605 commercial-industry customers. Gas management for all customer sectors reached 262 BBTUD.

Furthermore, RU IV Cilacap also requires 51 MMSCFD of gas. PGN also plans to regasify the RU IV Cilacap Refinery which is in line with building the Tegal-Cilacap pipeline infrastructure.

The regasification of RU IV Cilacap is in line with the construction of the Cisem 2 pipeline and the plan to integrate transmission pipes on the island of Java.

"PGN continues to maintain reability and supply security to meet demand. PGN has also mapped potential supply & demand in the future in line with infrastructure development. When there is upstream production, PGN can monetize its gas both in terms of midstream and downstream," said Ratih.