Pertamina Gas Subholding Optimizes Gas Utilization For Domestic

Illustration of natural gas infrastructure of PT Pertamina (Persero) Subholding Gas, PT PGN Tbk. (PGN Doc)

JAKARTA - Subholding Gas PT Pertamina (Persero), PT PGN Tbk will continue to optimize the use of natural gas for domestic use by developing and combining pipeline and outside pipeline infrastructure.

PGN Infrastructure and Technology Director Achmad Muchtasyar in his statement in Jakarta, Thursday, said natural gas has an important role as one of the national energy buffers until 2050.

"Pertamina Gas Subholding, PT PGN Tbk will focus on domestic gas utilization by developing and combining pipeline and beyond-pipeline infrastructure in the industrial, household, MSME, power generation and transportation sectors," said Achmad as quoted by Antara, Thursday, June 23.

Achmad explained, based on the National Industrial Development Master Plan (RIPIN), there were indications of seven new special economic zones (SEZs) that became potential developments for the national natural gas network.

"The development of natural gas infrastructure will be aligned with the plan to develop industrial estates (KI) and supporting infrastructure for KI. We are conducting a joint study with KI managers to map out the potential demand for natural gas in KI. It is possible to synergize with other BUMN groups," he said.

According to Achmad, the challenge is that natural gas infrastructure is not yet available evenly in the potential locations of new KI, especially central Sumatra and central-eastern Indonesia.

"Then, there is a refinery regasification project belonging to the Pertamina Group. One of them is the Tuban GRR project located 55 km from the Gresik-Semarang pipeline. The PRPP (Tuban) refinery has provided land and will build a jetty to dock large ships, including incoming LNGC, so that LNG will it is more feasible to use land-based LNG," he said.

PGN also took part in the small land-based LNG regasification Terminal project at RU V Cilacap and the construction of the 78 km Senipah-Balikpapan 20-inch pipeline to RU V Balikpapan.

Meanwhile, power plant regasification is being accelerated in 10 locations in Nusa Tenggara and Southeast Sulawesi.

According to him, PGN's business portfolio will continue to be improved by focusing on the LNG trading and retail business in the future. The two projects to be developed are Jambaran Tiung Biru through a mini-LNG plant with a capacity of 2.5 BBTUD and the Bontang LNG Bunkering.

"This is a point for a very challenging business going forward, so that PGN can be stronger and more sustainable. The largest growth comes from the household segment with plans to add one million households per year," said Achmad.

According to him, the electricity, industry and retail segments remain the largest backbone demand for Subholding Gas, in which synergies are made to supply gas for refineries and smelters, as well as breakthroughs in providing retail non-pipeline modes and LNG trading.