Supporting Clean Energy Supply for IKN, PGN Prepares Household Gas Network

Jakarta – PT PGN Tbk, as Pertamina’s Subholding Gas, is preparing to develop the household gas network program as part of its support for providing clean energy in the National Capital City (IKN). PGN is also ready to collaborate with various parties in building IKN, especially in developing natural gas infrastructure.

PGN's Sales & Operations Director, Ratih Esti Prihatini, expressed PGN's readiness to synergize in the development of the gas network. She conveyed this during a visit to IKN with BPH Migas last week.

The government mandates the development of the gas network to Pertamina as the Oil and Gas Holding in the Central Government Core Area (KIPP IKN). Pertamina then assigns PGN, as the Subholding Gas, to carry out the project. This means the gas network will be utilized for residential buildings, including official residences for ministers and staff in IKN. In the initial phase, the gas network will be prepared for 166 towers (for ASN housing) and 34 ministerial houses.

“We are ready to be part of the clean energy solution in IKN and expand the utilization of natural gas for a greener environment, with the multiplier effect benefiting both the environment and the community. After all, natural gas is the cleanest fossil energy, which can be part of the energy transition solution alongside other clean energy sources towards a New Renewable Energy era and achieving the NZE 2060 target,” said Ratih, on January 30, 2024.

The development of the gas network in IKN is planned to be carried out in stages. In addition to government housing, the gas distribution network will also serve commercial buildings, government offices, and other facilities. The natural gas distribution pipes will be placed within the public network or Multi Utility Tunnel (MUT), which will be constructed by the Ministry of Public Works and Housing (PUPR).

Natural gas will be supplied through Compressed Natural Gas (CNG) sourced from Balikpapan or Bontang in East Kalimantan. PGN has already begun construction on-site, with completion targeted for June 2024.

PGN's support for natural gas supply in IKN is based on the vision of providing clean energy in IKN, in line with the IKN policy set out in Law No. 3/2022, which includes a mix of natural gas with hydrogen as a source for the city gas network.

PGN's portfolio in East Kalimantan will continue to expand to reach IKN and support the surrounding regions, ensuring the broader and optimal use of clean energy. One example is PGN, through PT Pertagas, managing the integrated natural gas delivery system, including the 20” Senipah-Balikpapan gas transmission pipeline, which spans 78 KM. In the future, a new distribution network will connect IKN's gas distribution network to the Senipah-Balikpapan pipeline, making gas delivery more reliable.

Another development by PGN involves CNG and LNG infrastructure for retail, to distribute gas to East Kalimantan. PGN is ready to support the reliable natural gas supply to foster economic growth in East Kalimantan and will continue to synergize with IKN authorities and other stakeholders in planning and developing clean energy from natural gas in IKN.

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