Focus on Future Energy Infrastructure, Here is a Series of PGN Strategic Projects

Jakarta – PT PGN Tbk as Pertamina's Gas Subholding is committed to increasing operational capacity and expanding the reach of natural gas to support energy infrastructure in Indonesia. A number of strategic projects continue to progress until the third quarter of 2024 and are being implemented with a focus on future contributions.

"The first project is the construction of natural gas infrastructure, the Tegal - Cilacap Pipeline, which is an implementation of the Grow pillar strategy to continue developing the company's core business. The construction of this gas pipeline continues the utilization of the Cirebon - Semarang Phase 2 gas pipeline towards the RU IV Cilacap Refinery gasification project. The volume to be distributed is 36 MMSCFD," explained PGN President Director Arief Setiawan Handoko in the 9M-2024 Consolidated Performance Earning Calls of PT Perusahaan Gas Negara Tbk on Wednesday, (6/11/2024).

The Tegal - Cilacap Pipeline will later be able to expand the reach of natural gas infrastructure for customers on the southern side of Java Island and other potential customers along the pipeline, so that the utilization of natural gas will increase. Currently, this project is in the process of drafting a commercial agreement between PGN and PT Kilang Pertamina Internasional, implementing FEED and managing permits.

"The next project is the Cikampek - Plumpang oil transportation as an initiative of the adapt pillar. We see an opportunity to diversify PGN's business portfolio by building pipeline infrastructure to distribute oil," said Arief.

The oil transportation pipeline construction project between TBBM Cikampek and TBBM Plumpang is being carried out by PGN's subsidiary, PT Pertamina Gas (Pertagas), in collaboration with PT Pertamina Patra Niaga (PPN). The construction scheme used is the Build-Maintenance-Transfer (BMT) scheme and a 10-year operating period.

The pipe with a diameter of 16 inches and a length of 96 km is scheduled to be operated in the first quarter of 2027 to transport 4.6 billion liters of oil per year. As of September 2024, Pertagas and Pertamina Patra Niaga are in the process of drafting an agreement for the provision of Cikampek-Plumpang fuel pipeline services and preparing for the EPC tender.

Another strategic project is the household gas network project (Gaskita) which is being implemented independently by PGN. This program began in 2021 and has been implemented in 36 cities/regencies, including the development of Jargas outside the pipe using CNG in Central and South Java (Yogyakarta, Sleman and Solo). As of September 2024, the overall construction progress has reached 88%. Meanwhile, the progress of pipeline construction has reached 2,076 km or 93% of the target and 123,371 house connections (SR) have been installed from the target of 290,400 SR.

Next is the Arun Hub LNG Tank revitalization project. The Arun LNG Terminal is strategically located along the main trade route and close to the growing LNG market in Southeast and South Asia. Pertamina as the Oil and Gas Holding aspires to position the Arun LNG Terminal as a leading LNG hub in Asia. The initial step is the revitalization of the F-6004 tank, which has not been operating since 2004. As of September 2024, the overall progress of the revitalization work has reached 35.33%.

"The last project is Biomethane, a strategic initiative by PGN to promote the widespread use of gas during the energy transition. PGN is advancing the decarbonization of the palm oil industry through the Biomethane project, utilizing palm oil waste," explained Arief.

PGN is conducting a joint study with the Japanese Consortium on the development of biomethane. In addition, PGN has completed the Feasibility Study of Biomethane Utilization and the Feasibility Study of the Development of Injection Point Facilities at the Pagardewa SPBG, signed a Memorandum of Understanding (HoA) with the Japanese Consortium and obtained a Letter of Intent (LOI) with potential customers. PGN has completed the FEED for the Biomethane Plant in June 2024 and has appointed an ISCC Bio-certificate consultant on September 30, 2024.