Joint Commitment of PGN and BPH Migas to Massive Development of National Gas Network

Semarang – PT PGN Tbk as Pertamina Gas Subholding is committed to be more massive in developing household gas networks. In line with the government's efforts to provide a substitute for gas cylinders, namely by using gas networks. The government also has the same hope as PGN so that gas networks can increasingly reach various regions, along with the development of natural gas transmission and distribution infrastructure.

Iwan Prasetya Adhi as a Member of the BPH Migas Committee said that currently the transmission pipeline from Semarang to Batang has been built. The pipeline carries gas from various sources such as JTB and East Java (Jatim). The government's hope is that the pipeline network can connect from Aceh to East Java. So that later the excess gas in Aceh or East Java can be distributed to places where there is a shortage of LPG.

"The Minister (of ESDM) has also initiated, please maximize the gas network to households on Java Island, so that it can reduce the use of LPG, most of which is still imported. If we can use the gas network for households, then people can enjoy natural gas as they enjoy PDAM water," said Iwan in the BPH Migas Goes to Campus workshop at Semarang State University (UNNES), Thursday (7/11/2024).

The BPH Migas Goes to Campus activity also became an educational event for PGN to UNNES students regarding PGN's role in utilizing national natural gas.

Harry Budi Sidharta as Director of Infrastructure and Technology of PGN expressed PGN's crucial role in the development of the gas network. PGN also ensured that in every stage of the gas network development, PGN always coordinates with the government. "LPG is still mostly imported, this is a concern for the government that the burden is getting higher and higher, resulting in a fiscal deficit. With more gas networks, it will reduce LPG imports," said Harry.

Harry said that PGN is targeting to complete 400,000 House Connections (SR) by 2025. The gas network is a gas network program that has been built since 2021, using PGN's independent investment or commonly known as the GasKita product.

Nationally, PGN has built and managed gas networks for households of approximately 820,000 SR. When compared to LPG, the volume is around 83,000 tons per year.

Harry said that PGN conducted a survey where around 56% of people are still comfortable using LPG. Then 17% are related to the price compared to subsidized LPG. "This is a shared homework on how to direct people who use subsidized LPG to gas networks," he said.

PGN's synergy with BPH Migas has been closely established so far in developing the use of natural gas. Collaboration is also established to maintain the availability and accessibility of natural gas. PGN always coordinates with BPH Migas where in the downstream sector, BPH Migas is the regulator and PGN is the implementer.

"PGN is always committed to developing the natural gas distribution business which we believe, natural gas will be a good alternative energy source for the community. The use of natural gas is also expected to be more affordable and support the government towards the golden Indonesia 2045," concluded Harry.