PGN-PDSI SIGNs A Cooperation For Converting Fuel To Gas

Photo: Doc. Antara

PT PGN Tbk, as Pertamina Gas Subholding, through its affiliate PT Gagas Energi Indonesia and PT Pertamina Drilling Services Indonesia (PDSI) signed a cooperation program to convert fuel oil (BBM) to natural gas.

President Director of Gagas Muhammad Hardiansyah said that his party is committed to meeting the needs of natural gas in Pertamina, including Subholding Hulu.

"Hopefully, the use of natural gas at PDSI will make a positive contribution, especially in supporting decarbonization within the Pertamina Group. The use of natural gas is expected to reduce emissions by around 10-20 percent," he said in a written statement quoted by Antara, Tuesday, February 7.

The signing of the MoU for the conversion program took place in Jakarta, Monday, February 6, which was attended by President Director of Gagas Muhammad Hardiansyah, President Director of PDSI Rio Dasmanto, Director of Operations and Commercials Gagas Dian Kuncoro, CEO of Pertamina's Upstream Subholding Wiko Migantoro, and President Commissioner of Gagas Michael Umbas.

The initial steps or pilot projects for the conversion program will begin in the PDSI operating area in Rokan, Riau and Subang, West Java.

PDSI President Director Rio Dasmanto explained that there are two main objectives of cooperation between PDSI and Gagas.

"First, get the efficiency of using BBG and second to support the implementation of programs that are in line with environmental, social, and governance (ESG). The use of BBG for infrastructure in PDSI is expected to produce considerable saving and efficiency. In addition, the use of BBG is expected to support the implementation of ESG, especially related to reducing carbon," he said.

Rio also revealed that if this pilot project is successful, the conversion process may be implemented in all operational areas of PDSI.

Efforts to optimize the use of natural gas as transitional energy are one of the priority programs carried out by Pertamina and Subholding.

In addition to the industrial and commercial sectors, efforts to decarbonize also continue to be carried out by Subholding Gas through natural gas development for the transportation sector through truck conversions, light vehicles, and motorcycles.

In addition to its role as transitional energy, the presence of natural gas is also an alternative to energy that is more environmentally friendly and cheap.

"Utilization of natural gas, both in the industrial, commercial, and transportation sectors, is expected to make a positive contribution not only to companies, but also to countries, especially in dependence on energy imports. Currently, the existing natural gas supply comes entirely from domestic sources of supply," said Hardiansyah.