A Series Of PGN Strategic Projects That Will Step On Gas This Year

President Director of PGN Arief S. Handoko. (Photo: Doc. ANTARA)

PT Perusahaan Gas Negara Tbk (PGN) is speeding up the construction of natural gas infrastructure to welcome the government's self-sufficiency in energy.

"With the integration of pipeline and non-pipeline infrastructure, PGN will be more flexible in meeting demand and expanding the market in Indonesia," explained PGN President Director Arief S. Handoko as quoted on Friday, March 14.

Arief explained, PGN continues to connect through a distribution pipeline network in West Indonesia for reliability and access to new customers.

The first is Dumai Pipe Sei Mangke to flow natural gas from North Sumatra & Aceh to central and southern Sumatra. Then the utilization of Cirebon Semarang (Cisem) Transmission Pipelines, to flow gas surpluses from East Java to West Java.

In addition, there is a project to convert fuel to gas at the Cilacap Refinery and expand access to natural gas on the southern side of Java Island, through the Tegal Cilacap Pipeline project. In 2025, jargas is a priority with a target of adding 200,000 house connections (SR).

Pipanization, continued Arief, will also be developed to support downstreaming, namely the Bintuni Fakfak Pipeline project, because it has the potential to supply gas to petrochemical factories. Furthermore, there is an opportunity to distribute gas to industrial areas including the Makassar Industrial Estate, Parimo, Morowali, and Bintuni Bay.

The beyond pipeline natural gas infrastructure developed is the LNG facility in central Indonesia to meet demand from the smelter sector and power plants. PGN is working with PLN EPI to gasify power plants in North Papua.

If natural gas infrastructure can be interconnected, it will create solutions to manage the deficit and surplus of natural gas supply. The current challenge is natural decline in western Indonesia, while there is a lot of potential gas supply in Eastern Indonesia. LNG infrastructure is very possible to bring LNG to western Indonesia, as well as to meet demand growing in Central and Eastern Indonesia," explained Arief.

PGN is also running the LNG Hub Arun Tank revitalization project, namely the F-6004 tank to increase LNG supply storage. The progress of revitalization construction work has also reached 73 percent.

As Pertamina's Gas Subholding, Arief emphasized that PGN is ready to become a strategic partner to support energy self-sufficiency efforts.

Based on data from the Ministry of Energy and Mineral Resources, the government has a master plan for the national natural gas transmission and distribution network.

The government has launched backbone development in terms of transmission in Sumatra and Java. Transitional pipes are one of the priorities that have been completed, both in Java (Batang Cirebon) and Sumatra (Dumai Sei Mangke).

Meanwhile, in the regions of Central and East Indonesia, the government targets the construction of Beyond pipeline modes such as mini LNG and LNG terminals because of the location of the islands and many gasification programs for power plants.