Pertamina's Gas Subholding Infrastructure Development Direction for Optimizing National Natural Gas Utilization

Jakarta, June 24, 2022 – Natural gas has a significant role as one of the national energy cantilevers until 2050. Pertamina’s Gas Subholding, PT PGN Tbk, will focus on natural gas utilization for domestic purposes by developing and combining pipeline and beyond-pipeline infrastructure in the industrial sector, households, MSMEs, power plants, and transportation.

Director of Infrastructure and Technology of PGN, Achmad Muchtasyar, explained that based on the National Industrial Development Master Plan (RIPIN), there were indications of 7 New Special Economic Zones (KEK) locations that became potential developments for the natural gas network.

“Natural gas infrastructure development will be aligned with the plan for the Industrial Estates (KI) development and supporting infrastructure for KI. We conducted a joint study with IP Management to map the potential demand for natural gas in the IP. It is possible to synergize with other SOE Groups," said Achmad (23/6/2022).

According to Achmad, the challenge is that natural gas infrastructure is not yet available evenly in potential locations for new Industrial Estates (KI), especially the Central Sumatera and Central-Eastern parts of Indonesia.

"Then there is the Pertamina Group's refinery regasification project. One of these projects is the Tuban GRR, located 55 Km from the Gresik-Semarang Pipeline. The PRPP refinery has provided land and will build a jetty to dock large ships, including incoming LNGC. Thus, LNG will be more feasible using Land Based LNG," said Achmad.

PGN also took part in the small land-based LNG regasification Terminal project at RU V Cilacap and the 20-inch Senipah-Balikpapan Pipeline construction for ±78 KM to RU V Balikpapan. Meanwhile, in ten locations across Nusa Tenggara and Southeast Sulawesi, the regasification of power plants is now being accelerated.

The business portfolio continues to be improved. In the future, PGN will focus on the LNG trading and retail business. The two projects to be developed are Jambaran Tiung Biru through a mini LNG Plant with 2.5 BBTUD capacity and the Bontang LNG Bunkering.

“This is a point for a very challenging business in the future so that PGN can be stronger and more sustainable. The biggest growth comes from the household segment with a plan to add 1 million households per year," said Achmad.

"The electricity, industry, and retail segments remain the largest backbone demand for Subholding Gas, where synergies are carried out for gas supply for refineries and smelters, as well as breakthroughs in providing non-pipeline retail modes and LNG trading," stated Achmad.**