PGN Supports Acceleration Of The Utilization Of Phase II Cisem Pipes To Grow Investment

Minister of Energy and Mineral Resources Bahlil Lahadalia inaugurated the construction of the Cirebon Gas Transmission Pipeline Semarang Phase II. (Doc PGN)

Pertamina Gas Subholding, PT PGN Tbk together with its subsidiary, PT Pertamina Gas (Pertagas) is ready to support the use of the Cirebon Gas Transmission Pipeline Semarang Phase II (Pipa Cisem Phase II) which was inaugurated by the Minister of Energy and Mineral Resources Bahlil Lahadalia on Monday, 30/9/2024. The Cisem Phase II project will complete the Cisem Phase I construction in 2023 and is already operating to supply natural gas needs in the Kendal Industrial Estate and Batang Integrated Industrial Zone.

The first welding agenda or the first welding of the Cisem II Pipe project was also attended by Plt. Director General of Oil and Gas Dadan Kusdiana, Head of SKK Migas Dwi Soetjipto, Acting Governor of Central Java Nana Sudjana, Director General of Planning and Development of KESDM Migas Infrastructure Laode Sulaeman, President Director of PGN Arief Setiawan Handoko, Director of Infrastructure and Technology of PGN Harry Budi Sidharta, President Director of Pertagas Gamal Imam Santoso. In addition, also attended by the President Director of KIT Batang, the ranks of the KSO consortium PT. Suplindo Timas - PT. Pratiwi Putri Sulung and other ranks involved in the Cisem II Pipe project.

Minister of Energy and Mineral Resources, Minister of Energy and Mineral Resources Bahlil Lahadalia, said that the Cisem II Pipe is an effort to accelerate the government in attracting investment, especially in KIT Batang. According to him, one of the master plans designed is how to make this area a comparative advantage compared to other industrial areas. Among them is by road toll, one of the infrastructure must be built, one of which is gas infrastructure for fuel. Cisem I and Cisem II are a kind of toll road, toll the gas version," he said.

The Cisem II pipeline, Bahlil continued, is a form of collaboration between the government, BUMN and the private sector. "Hopefully after this implementation it will be managed by PGN," said Bahlil.

"This project is one of the nasoional StrategIs Projects determined by President Number 3 of 2016 with the aim of supporting the strengthening of sustainable national energy infrastructure and creating efficiency in natural gas distribution to support national economic growth," said Plt. Director General of Oil and Gas Dadan Kusdiana.

The gas sources for the Cisem II project come from the Jambaran Tiung Biru (JTB) and Long Term Plan (LTP) fields which come from the potential of all WK in the East Java region (WK Agung and WK Bulu). As for the beneficiaries of the construction of the Cisem II project, including the Cilacap Refinery, Balongan Refinery, various industries in the West Java region, household Jargas, as well as additional needs from Pupuk Kujang.

PGN and Pertagas as part of Pertamina's Oil and Gas Holding are ready to support the use of Cisem II Pipelines. Connected Cisem I Pipelines with Cisem II Pipes will provide great benefits to the fulfillment of natural gas. As the government aspires, we are ready in terms of natural gas management, distribution and monetization in order to attract investors and grow the economy," said PGN President Director Arief Setiawan Handoko.

Arief added that PGN will also have flexibility in distributing natural gas, especially from East Java to market centers, both in Central Java and West Java. PGN is ready to carry out operational management in order to provide supply certainty for markets, both households, small businesses, industrial commercials so that the economy will grow as targeted by the government.

One of the plans to optimize the use of the Cisem II Transmission Pipeline, namely the gasification plan of the Cilacap Refinery Unit IV (RU IV Cilacap) refinery and in line with the integration of natural gas transmission pipelines on the island of Java. PGN will build gas distribution infrastructure, namely the Tegal Pipe Cilacap. This pipeline is also planned to expand the reach of natural gas infrastructure on the southern side of Java and potential customers along the pipeline, so that natural gas utilization will increase.

The Tegal Cilacap Pipe Project is scheduled to start in 2025 and commissioning in the 3rd Quarter of 2026 with a column flowing to R IV Cilacap of 51 MMSCFD. Currently, PGN and PT Kilang Pertamina internasional (KPI) have signed Heads of Agreement (HOA) on the sale and purchase of natural gas for the RU IV Cilacap Refinery. Currently, under the preparation of a commercial agreement between PGN and KPI, the implementation of FEED and licensing.

"Pertagas is ready to carry out the mandate of the management of the Cisem II Pipe to secure operational reliability in terms of transmission, continuing the use of operations as has been realized in the Cisem I Pipeline. The portfolio owned will be deployed so that the supply of gas transported or distributed through the Cisem II Pipeline is more sustainable in the future," said Pertagas President Director Gamal Imam Santoso. (ADV)