Overcoming Infrastructure Constraints, PGN Introduces Liquid Natural Gas To Customers

Natural gas (intermediate)

JAKARTA - PT PGN Tbk (PGAS) has a number of ways to overcome infrastructure challenges in order to channel gas needs to customers.

PGN's Corporate Secretary, Fajriyah Usman said, as a solution to infrastructure challenges, PGN began to introduce liquid natural gas (LNG) tau natural gas products to customers.

According to Fajriyah, PGN already has a Floating Storage Regasification Unit (FSRU) facility in Lampung for LNG regasification. For information, regasification is a process of converting LNG back into gas

"Now there are more (LNG) because there are indeed limited supplies from pipe gases. So, our facilities for regasification are also increasing, so optimization is being optimized," said Fajriyah to the media crew in Jakarta, Thursday, August 14.

Nevertheless, Fajriyah said that Pertamina's subsidiary with the ticker code PGAS also experienced challenges in terms of prices when expanding LNG marketing.

Fajriyah said, there is an additional fee for regasification which is often considered burdensome for customers' morning.

"Indeed, the price from LNG is also higher than the price of piped gas, which in the end is indeed one of the things that affects gas prices in general in the industry," he explained.

For information, PGN is currently accelerating the construction of pipelines and LNG infrastructure as the backbone of national energy.

Strategic projects such as Java's cross-Sumatra transmission pipeline, Arun LNG Terminal, to FSRU revitalization and storage tanks are key to responding to supply mismatches and gas demand, especially between high-conserved eastern and western regions.

PGN also expressed appreciation for the Government's trust and support, including in the provision of domestic gas allocation and regulatory support that allows PGN to carry out its strategic mandate optimally. This support is an important foundation for the sustainability of natural gas prices and affordability for the community and industry.

PGN is also actively exploring prospective contracts with domestic gas producers, including Inpex Masela and Mubadala-Kamanaman, to ensure the reliability of long-term supply. On the price side, PGN continues to strive to maintain affordability with supply portfolio strategies, infrastructure efficiency, and price formulations that adjust customer purchasing power.