Increasing Technology Synergy and Utilization, Pertamina Gas Subholding Implements Breakthrough in LNG Utilization
Jakarta, September 21, 2022 – As Pertamina's Gas Subholding, PT PGN Tbk's role to maintaining the security and stability of the natural gas energy sector on a national and international scale continues to grow. At the Gastech Exhibition & Conference 2022 in Milan (5-8/9/22), PGN was present to introduce several low-carbon natural gas and LNG energy initiatives. PGN integrates pipeline and non-pipeline infrastructure to increase natural gas utilization as clean energy.
"PGN continues to carry out its mandate for security supply, utilizes technology and initiatives for national clean energy products, and synergizes with several partners in product and project development," said Director of Strategy and Business Development of PGN, Heru Setiawan (15/9/22).
As currently running is the Arun LNG Hub development, managed by PT Perta Arun Gas (PAG) as Subholding Gas' affiliate. Arun's strategic location makes it an Asian LNG trading center and a Global LNG Hub destination such as China, Australia, Angola, Egypt, and the United States. PAG plans to build 3 new LNG Storage tanks with a capacity of 180,000 M3 each to make Arun an LNG Hub Leader in Asia by 2030.
“One of our strategies is partnering with international partners. Currently, 4 LNG tanks exist, two for domestic and two for international. In entering the market, we partner with partners from Europe and Asia. In the future, we plan to increase the number of the tanks again," explained the President Director of PT Perta Arun Gas, Bara Ilmarosa.
Bara added that the 2022 Gastech Exhibition & Conference is a way to introduce the future LNG projects to make Subholidng Gas an LNG global player.
Opportunities for LNG that can be utilized as an alternative to clean energy for ship fuel, PGN has partnered with strategic partners by utilizing the existing infrastructure at PT Badak LNG to make a breakthrough by initiating the first LNG Bunkering project in Indonesia.
In the land transportation sector, PGN provides LNG Mobile Refueling Unit (MRU) services in 14 locations in Indonesia. The LNG MRU will be increased following toll road construction acceleration, especially in Java and Sumatera, as well as the number of logistics trucks. LNG's demand for land transportation is 12 BBTUD in the next ten years.
“Besides being cleaner than diesel fuel, LNG is also more affordable. The savings obtained are 20 percent for trucks," added Heru.
PGN also carries out the mandate from the government to make LNG an alternative energy source for power plants at various points in central and eastern Indonesia. Technical accuracy must be carefully planned so that the LNG allocation of around 83 BBTUD can be utilized optimally.
“To fulfill energy needs in Indonesia as an archipelagic country, beyond the pipeline development for LNG distribution is a must. Retail LNG demand is estimated to increase to 119 BBTUD in the next ten years. This target is quite challenging in providing LNG infrastructure such as Isotank, micro bulk, VGL cylinders, and so on, as well as prioritizing logistics schemes that are as efficient as possible,” explained Heru.
In addition to LNG, other beyond pipeline breakthroughs made by PGN include a Gaslink Cylinder development where CNG is distributed to the MSME sector, the Carbon Capture, Utilization, and Storage (CCUS) development with PT Pupuk Iskandar Muda, the development of biomethane and hydrogen.
Heru believes that Subholding Gas' attendance at the Gastech Exhibition & Conference 2022 also emphasize the company's obligation to the international community. Especially in maintaining Indonesia's energy security by looking for various domestic clean energy sources to meet domestic demand and guarantee supply, reliability, and affordability for the country's economy development.**