PGN Runs 3 Strategic Initiatives To Maintain Long-Term Business Sustainability

President Director of PGN Arief Setiawan Handoko. (Photo: Doc. Antara)

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN), Subholding Gas PT Pertamina (Persero), carries out three strategic initiatives to maintain the company's business continuity in the long term, as well as optimize domestic energy sources through the use of natural gas.

"Grow, Adapt & Step out (GAS) is PGN's strategy in dealing with changes in the energy business environment which is very dynamic. As part of BUMN PGN, it continues to be committed to supporting efforts to increase natural gas utilization as a domestic energy source that provides many benefits to our nation," explained PGN President Director Arief Setiawan Handoko in Jakarta, quoted from Antara, Friday, March 1.

According to Arief, Grow's first priority strategy is to strengthen and grow existing business services to ensure that every service to customers runs prime and is able to encourage the company's performance to continue to grow positively.

Several initiatives that have been and will be carried out include building a number of gas infrastructures such as gas distribution from Jambaran Tiung Biru (JTB) to Petrokimia Gresik, the WTS Pemping pipeline project aimed at encouraging gas optimization from West Natuna, as well as the Tuban Refinery project which is part of a national strategic project.

PGN seeks to realize the long growth target of national natural gas infrastructure with an additional 11 thousand km in 2034.

"Busically, these strategic projects will encourage large amounts of gas consumption growth. Meanwhile, with many large companies turning to gas, it will help the energy transition process towards net zero emissions. These two are fundamental aspects for PGN's future," said Arief.

Still in an effort to strengthen business, the company also continues to expand the gas network (jargas) for households. By 2024, PGN targets to build an expansion of household connections of 200 thousand household connections. The company is also in the stage of developing a gas network project in IKN, so that it is targeted that jargas users in the next year will reach 1 million households.

Arief said that PGN's business in supporting the upstream oil and gas sector has proven to have a big business impact. One of them is the Rokan oil pipeline project. It is planned that this year PGN will participate in building the Cikampek - Plumpang pipeline infrastructure.

The second priority strategy is Adapt or adaptive to various business changes and continues to optimize every opportunity available in the market.

The initiative taken included developing the LNG business as a source of natural gas supply for PGN.

To support the strengthening of LNG's business, the company took the initiative to build LNG infrastructure in the country. LNG's business development is important to strengthen the resilience of domestic gas supply where the supply of piped gas is in natural decline conditions so that LNG is the main choice in maintaining service sustainability, including being a source of new performance growth where PGN has entered the era of international LNG trading.

We will continue to adapt to a business environment that continues to change, both domestically and globally. LNG will be one of the company's focuses considering that in the future the main source of domestic gas is LNG. That is why, we continue to disseminate information to our customers regarding the potential for changes in the portfolio of gas sources which will certainly have an impact on the entire national natural gas service chain," said Arief.

The third priority strategy is Step out to start pioneering into new business segments related to natural gas.

One of the innovations made is to enter the chemical business such as petrochemical factories and gas processing as basic chemicals such as ammonia and methanol.

"Gas to chemicals is very strategic to be implemented immediately in the initial phase by participating, one of which is in a petrochemical factory. There is great potential from this sector so that it is hoped that in the future it can increase gas utilization in a fairly large volume and of course it is a form of effort to optimize the utilization of domestic natural gas," he said.

PGN also plans to build biomethana infrastructure and commercialization as renewable gases that can be produced from further processing of biogas.

This plan is also PGN's commitment and support for achieving the national energy mix target. The National Energy General Plan (RUEN) set the portion of gas in Indonesia's energy mix to increase from 22 percent by 2030 to 24 percent by 2050.