Facing Business Challenges, PGN Optimizes Upstream Business Contribution To Downstream Oil And Gas

Photo: Doc. PGN

JAKARTA - In the midst of the challenges currently being faced, PT Perusahaan Gas Negara Tbk (PGN) as Pertamina's Gas Subholding focuses on strengthening the contribution of upstream, midstream to downstream businesses to maintain the sustainability of the Company's business. This was conveyed by PGN President Director Arief Setiawan Handoko in his meeting with Equity Analysts and PGN Investors at the Central PGN Office, Jakarta.

"There are many issues and challenges currently being faced, and yet behind that there is a big enough opportunity for PGN to maintain survival as a national gas aggregator in the future," said Arief, Sunday, July 23.

Responding to current challenges and to support the Company's performance, PGN focuses on optimizing in various business sectors to support the Company's performance. In terms of upstream, some time ago, PGN Saka succeeded in increasing the production volume of 2,200 barrels per day of oil with no watercontain. Then there is an additional gas that can be utilized by 20 - 40 MMSCF and still has a potential of 8,800 - 10,000 barrels of oil from the Pangkah Block.

"In the future, upstream businesses can contribute more to PGN and also support increasing oil and gas lifting for the country," said Arief.

Arief explained that through the synergy between Pertamina Group and Pertamina Hulu Rokan through the construction of the Rokan Oil Pipe, it has contributed to the Company's revenue of 11.8 million US dollars per month.

"In the field of developing and managing gas pipeline infrastructure, especially in the Sumatra area, it has been connected to Singapore, Batam, to West Java. Currently, pipes are being built from Cirebon to Semarang where there is potential demand in the Central Java industrial area. Sei Mangkei to Dumai will also be connected. We also have Kalija and if WNTS has been connected to Sumatra, it will increase gas supply if there is a shortage of supply and increase gas sales volume," explained Arief.

Pertamina's refineries as part of the big family of Oil and Gas Holding, we also supply gas, such as Cilacap, Balongan, and Balikpapan. This is our captive that has the potential to become big buyers. For the beginning of the volume, tens of MMSCFD of gas will be distributed to Subholding Kilang," explained Arief.

Arif added, in terms of developing the beyond pipeline business, PGN began to build LNG storage through the LNG tank revitalization project in Arun where there is potential captive tenants to accommodate LNG.

PGN also continues to make maximum and intensive efforts related to the fulfillment of the LNG Trading contract carried out by the Company with a number of parties.

"The challenge is a strong opportunity. The stages are already running and there is already a little green light related to LNG Trading contracts. We hope to provide positive results and in the future this business will be able to support PGN's performance," said Arief.

Arief also emphasized PGN's commitment to maintaining supply reliability. Intensive communication with the Government continues to be carried out in order to get gas supply allocations. In addition, the Liability Management program by carrying out PGN and Saka buyback bonds is carried out in an effort to maintain the company's performance.