PGN Supports the Acceleration of Cisem Phase II Pipeline Utilization to Boost Investment
Batang, October 1, 2024 – Pertamina Gas Subholding, PT PGN Tbk, along with its subsidiary, PT Pertamina Gas (Pertagas), is ready to support the Cirebon – Semarang Gas Transmission Pipeline Phase II (Cisem Phase II) utilization, which was inaugurated by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, on Monday, September 30, 2024. The Cisem Phase II project will complement Phase I, which was completed in 2023 and is already operating to supply natural gas to the Kendal Industrial Zone and the Batang Integrated Industrial Zone.
The first welding ceremony for the Cisem II pipeline project was attended by the Acting Director General of Oil and Gas, Dadan Kusdiana, Head of SKK Migas, Dwi Soetjipto, Acting Governor of Central Java, Nana Sudjana, Director General of Oil and Gas Infrastructure Planning and Development of the Ministry of Energy and Mineral Resources (ESDM), Laode Sulaeman, President Director of PGN, Arief Setiawan Handoko, Director of Infrastructure and Technology of PGN, Harry Budi Sidharta, President Director of Pertagas, Gamal Imam Santoso, and President Director of KIT Batang. Representatives from the PT Timas Suplindo - PT Pratiwi Putri Sulung consortium and other parties involved in the Cisem II pipeline project were also in attendance.
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the Cisem II pipeline is the government's effort to accelerate investment, particularly in the Batang Integrated Industrial Zone (KIT Batang). He mentioned that one of the master plans designed for this area is to make it a competitive advantage over other industrial zones. It includes infrastructure development such as toll roads, with one of the key infrastructures being gas pipelines for fuel. "Cisem I and Cisem II are like toll roads, but gas toll roads," he said.
Bahlil explained that the Cisem II pipeline represents a collaboration between the government, state-owned enterprises, and the private sector. “After the welding process, PGN will manage it,” Bahlil added.
“This project is one of the national strategic projects established by Presidential Decree No. 3 of 2016, aimed at supporting the strengthening of sustainable national energy infrastructure and creating efficiency in natural gas distribution to foster national economic growth,” said Acting Director General of Oil and Gas, Dadan Kusdiana.
The gas supply for the Cisem II project will come from the Jambaran Tiung Biru (JTB) field and the Long-Term Plan (LTP), which draws from the potential of all working areas (WPs) in East Java (Agung WP and Bulu WP). The beneficiaries of the Cisem II project include the Cilacap Refinery, Balongan Refinery, various industries in West Java, household gas networks, and additional needs from Pupuk Kujang.
"PGN and Pertagas, as part of Pertamina's Oil and Gas Holding, are ready to support the Cisem II pipeline utilization. The connection of Cisem I and Cisem II will provide significant benefits for fulfilling natural gas needs. As the government envisions, we are prepared to manage, distribute, and monetize natural gas to attract investors and boost the economy," said the President Director of PGN, Arief Setiawan Handoko.
Arief added that PGN will also have the flexibility to distribute natural gas, especially from East Java to market centers in both Central and West Java. PGN is ready to manage operations to ensure a reliable supply for markets, including households, small businesses, and commercial industries, thus supporting the government's economic growth targets.
One of the plans to optimize the Cisem II Transmission Pipeline utilization is the gasification plan for Refinery Unit IV Cilacap (RU IV Cilacap), which is in line with the integration of the natural gas transmission pipeline in Java. PGN will build gas distribution infrastructure, specifically the Tegal – Cilacap pipeline. This pipeline is also planned to expand the reach of gas infrastructure on the southern side of Java, as well as serve potential customers along the pipeline route, thereby increasing natural gas utilization.
The Tegal – Cilacap pipeline project is scheduled to begin in 2025, with commissioning planned for the third quarter of 2026, delivering a volume of 51 MMSCFD to RU IV Cilacap. Currently, PGN and PT Kilang Pertamina Internasional (KPI) have signed a Heads of Agreement (HOA) for the sale and purchase of natural gas for RU IV Cilacap. Commercial agreements between PGN and KPI, along with FEED implementation and permitting processes, are currently being drafted.
“Pertagas is ready to carry out the mandate to manage the Cisem II pipeline to ensure reliable transmission operations, continuing the operational utilization achieved with Cisem I. Our portfolio will be deployed to ensure the gas transported and distributed through the Cisem II pipeline remains sustainable,” said Gamal Imam Santoso, President Director of Pertagas.
The Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, explained that Pertamina will optimize gas infrastructure to expand the reach of natural gas distribution.
"Gas infrastructure is essential for reaching a broader consumer base as natural gas can be optimized as a transition energy source," Fadjar concluded.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.