PGN Supports the Acceleration of the 2021-2023 National Gas Infrastructure Master Plan
January 11, 2021 - PT Perusahaan Gas Negara Tbk (PGN), as the Sub holding Gas of PT Pertamina (Persero), is committed to being part of the solution in various roles that are carried out in the energy sector. Especially to manage midstream and downstream businesses to distribute national gas and support the acceleration of completing the gas infrastructure master plan in Indonesia. As a manifestation of this commitment, PGN plans a strategic projection that will be realized through infrastructure management and gas commercialization in the medium term in 2021-2023.
Entering 2021, PGN is preparing to develop a massive gas infrastructure. First, the natural gas pipeline project will be an essential key in optimizing national natural gas utilization. Pipeline projects targeted for completion in 2021-2023 include the Rokan oil pipeline, transmission pipelines in North and Central Sumatra, the South Sumatra West Java (SSWJ) - West Java Area (WJA) integration pipeline, gas utilization pipeline for petrochemicals, transmission pipelines in Kalimantan, transmission pipelines in Central Java and distribution in Kendal - Semarang - Demak, as well as pipes for industrial, commercial and household customers (jargas).
SVP of Corporate Communication and Investor Relations of PT Pertamina (Persero), Agus Suprijanto explained, PGN will also provide gas to fulfill all Pertamina refineries. One of the targets in 2021 is the completion of the Refinery Gasification program in Balongan. Currently, the existing Balongan Refinery's gasification has been fulfilled through gas distribution from PT Pertamina EP and PT Pertamina Hulu Energi through the PT Pertamina Gas pipeline. To maintain the fulfillment of gas demand at the Balongan Refinery, PGN will continue to support long-term needs as planned in PGN's RJPP through SSWJ, and WJA pipelines will be completed in the first semester of 2021.
"Meanwhile, the gas infrastructure development to meet the Balikpapan Refinery needs in the long term through the Senipah - Balikpapan gas pipeline, and the Cilacap refinery gasification will be carried out by utilizing PGN's portfolio in managing LNG. In this project, PGN is preparing the Cilacap LNG Receiving Terminal construction, which is targeted to operate in the second semester of 2022, "added Agus.
In connection with the LNG portfolio, PGN is currently also carrying out a Government assignment program, namely the provision of infrastructure and natural gas for 52 PLN power plant points, which are targeted to be completed in 2022 as the implementation of the Minister of Energy and Mineral Resources Decree 13/2020. This project is intended to provide efficient electrical energy and create opportunities for PGN to develop natural gas infrastructure in the Central and Eastern parts of Indonesia through LNG.
"Then no less important is the construction of the Rokan Oil Transmission Pipe project. Namely, to support the Government's program in increasing oil production from the Rokan Block in 2021 with the efficiency of financing the National Strategic Project's implementation. Considering that the Rokan Block is the backbone of national petroleum production, as well as one of the largest oil blocks in Indonesia," said Agus.
As Pertamina Gas Subholding and managing 96% of national infrastructure and 92% of natural gas trading, PGN is committed to achieving the medium-term targets and achieving operating targets and boosting the natural gas business that can further increase the volume and utilization of national natural gas in Indonesia.
PGN will continue to strive for the best by implementing integrated gas infrastructure for supply security, efficiency, and better service levels throughout Indonesia. Support from all stakeholders is expected to help PGN in its efforts to expand the development of natural gas infrastructure and services as part of the solution to maintaining the country's economic conditions during a pandemic and restoring national economic growth.
"The development of natural gas infrastructure is important to continue to support the Government's vision and mission in increasing domestic gas consumption. With reliable infrastructure and guaranteed availability of natural gas, it will attract investment, increase competitiveness, especially in the industrial sector and encourage a multiplier effect to boost the national economy after the pandemic," Agus concluded.**