PGN Launches LNG Utilization Service for Domestic Industries to Support Sustainable Natural Gas Use

Jakarta – PT PGN Tbk enters a new era in the Liquified Natural Gas (LNG) commodity service as part of its commitment to the sustainable utilization of domestic natural gas. The beyond-pipeline services will strengthen infrastructure integration, enabling PGN to serve various sectors, including industries.

Starting in May 2024, PGN will receive additional gas supply from LNG regasification. The market interest in LNG has been quite positive, with initial industrial absorption reaching 15 BBTUD, which is expected to increase in line with demand. The regasified gas supply will be distributed to both existing and new customers.

Through the LNG service, PGN aims to support the growth of industries and retail, which have significant gas needs for their operations. LNG can serve as an alternative for industries and retail sectors where gas supply via pipelines is not available. PGN is committed to fulfilling the energy needs of the industrial sector, helping these industries grow and contributing to the national economy.

“We hope PGN’s entry into the LNG era will be a feasible solution for meeting domestic market demands in the future. Moreover, considering Indonesia’s geographic condition as an archipelago, LNG distribution is highly feasible for meeting cross-island demand,” said Director of Sales and Operations, Ratih Esti Prihatini, on May 21, 2024.

PGN aims to expand the utilization of natural gas to new areas, particularly those without existing infrastructure or pipeline services. “Given Indonesia's geographic condition, we need alternative gas distribution models, which is why LNG is crucial for sustainability and ensuring supply reliability,” Ratih explained.

The FSRU Lampung continues to operate to serve LNG needs, and the gas from LNG regasification is distributed for the power sector. LNG distribution from FSRU Lampung between January and April 2024 reached 70,075 M³ on February 13, 2024, 134,006 M³ on March 12, 2024, and 133,990 M³ on April 18, 2024.

In line with its collaboration with stakeholders, and coinciding with PGN’s 59th anniversary on May 13, 2024, regasified LNG from FSRU Lampung began being distributed to industries, as demand continues to grow.

FSRU Lampung is equipped to ensure the reliability and meet gas demand. Along with the integrated South Sumatera-West Java (SSWJ) transmission pipeline infrastructure, LNG processing at FSRU Lampung has continued to increase, catering to customer needs year after year. In 2023, the average LNG distribution from FSRU Lampung was 54.07 BBTUD, and between January and April 2024, the average reached 56.03 BBTUD.

“PGN has already distributed gas from the LNG regasification at FSRU Lampung, integrated with the South Sumatera-West Java (SSWJ) pipeline. In fluctuating supply conditions, FSRU Lampung and FSRU West Java serve as the backbone for service stability and supply points sourced from LNG,” said Ratih.

To strengthen LNG services in the future, PGN plans to expand LNG infrastructure by building hubs in several locations, including Aceh, Arun, and Bontang.

“As a Subholding Gas Pertamina, PGN strives to optimize the management and utilization of LNG effectively. Not only does it enhance energy availability and accessibility within the country, but LNG also serves as a sustainable and environmentally friendly energy source in the transition to Net Zero Emission targets by 2060,” concluded Ratih.

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