Successfully Utilize Cisem Transmission Pipes, PGN SHG Pertamina Commits To Complete Gas Distribution Pipes To KIT Batang On Time

Photo: Doc. PGN

JAKARTA - Minister of Energy and Mineral Resources (ESDM) carried out a review of the construction of the Cirebon-Semarang (Cisem) Natural Gas Transmission Pipe Phase 1 Semarang-Batang section. The construction of the CISEM natural gas transmission pipeline Phase I Semarang-Batang section along 60 km in diameter 20 inches is planned to be completed in August 2023.

Minister of Energy and Mineral Resources Arifin Tasrif ensured that the construction of the Phase I Cisem Pipeline would be in accordance with the plan and August the system was ready to receive gas. Gas needs for industry will begin in November or December 2023.

PT PGN Tbk as Pertamina Gas Subholding is ready to partner with the Ministry of Energy and Mineral Resources to make Cisem Pipe utilization a success as one of the government's efforts to increase natural gas access for the entire community and industry. PGN is committed to completing the construction of Distribution Pipes connected to the Cirebon-Semarang (Cisem) Transmission Pipeline for the Semarang-Batang section. The PGN distribution pipeline will meet Central Java's natural gas needs, especially the Batang Integrated Industrial Zone (KIT Batang).

PGN's Director of Infrastructure and Technology Achmad Muchtasyar revealed that currently, construction is in the physical work stage such as aligning pipes along about 4 km, digging & lowering pipes, and welding & testing pipes. In the early stages, PGN built a 5 KM distribution pipeline measuring 8 inches in diameter and will continue at the 2.3 KM development stage.

"We are targeting the development of gas distribution pipeline infrastructure at KIT Batang to be completed in conjunction with the completion of the Cisem Pipe construction in August 2023. We are also building supporting infrastructure such as service pipes and customer MRS," said Achmad while accompanying the work visit of the Minister of Energy and Mineral Resources at the Cisem Transmission Pipe Development Project section Semarang-Batang in Batang, Wednesday, June 7.

In the same activity, PGN's Director of Sales and Operations, Faris Aziz continued, the demand at KIT Batang Phase 1 was 12 BBTUD where those who had processed for PJBG were PT KCC Glass Indonesia with the need of approximately 8 BBTUD and PT Rumah Keramik Indonesia around 4 BBTUD. Fulfillment of customer demand at KIT Batang comes from PEPC JTB, where PGN has an allocation for industrial needs

"Gas for KIT Batang can increase PGN's market share, both increasing sales volume and turnover, as well as the number of customers of the commercial and industrial segments, especially in the SOR 3 Jateng Bali Nusra area. In addition, it will optimize the implementation of the marketing initiative PGN 360 Integrated Solution as a business development for PGN Group," said Faris.

PGN 360 Integrated Solution is an integrated service of PGN in the form of natural gas infrastructure development, utilization of earth in various sectors, engineering services, operations & maintenance, and other supporting systems spread across various regions in Indonesia. So by operating Distribution Pipes in KIT Batang, PGN's existence in Central Java will increase the stimulus for utilization of natural gas.

The actual progress of the construction of the Cisem Phase I natural gas transmission pipeline project (Ruas Semarang-Batang) itself based on data as of May 25, 2023, has reached 91.35 percent. This figure exceeds the initial plan target, where the target as of June 2023 is 90.65 percent.

The potential utilization of Cisem Gas Pipes includes the Kendal Special Economic Zone (KEK), with a projected gas requirement of up to 2026 of 39.42 MMSCFD and Batang Integrated Industrial Zone (KITB), with a projected gas requirement of 25.83 MMSCFD.

"We have the principle of supporting industrial development in Central Java by developing natural gas utilization. By looking at sufficient demand, it means that industrial productivity in KITB is also large. Revenue, not only PGN gets benefits but also for industries for competitiveness and regional income in Central Java," added Faris.

PGN hopes to contribute more to the accessibility of natural gas to Central Java so that the needs of industrial gas that are developing and the daily needs of the community can be met in a sustainable manner.