PGN’s Commitment to Continuously Supplying Natural Gas for Sustainable Electricity

Jakarta – PT PGN Tbk is committed to providing a continuous supply of natural gas to meet the needs of the electricity sector. The electricity sector is a dominant customer segment within PGN's total national natural gas trade. Among the key drivers of demand growth, the industrial sector is the largest consumer, followed by the electricity sector.

“The supply of natural gas to the electricity sector remains a priority for us, as it directly impacts the welfare of the broader community. Furthermore, power plants that use natural gas have added value, considering that natural gas is a more environmentally friendly fuel compared to oil or coal,” said PGN’s Commercial Director, Ratih Esti Prihatini, on September 27, 2024.

Ratih added that PGN continues to strengthen its strategic partnership with PLN. This partnership demonstrates PGN's commitment to ensuring the reliability of gas supply so that PLN can effectively meet the electricity needs of the public.

In addition, PGN manages and operates the FSRU Lampung, which is essential to meet the energy needs of the electricity and industrial sectors by using natural gas from the regasification of Liquefied Natural Gas (LNG). FSRU Lampung is integrated with the South Sumatera-West Java (SSWJ) pipeline as part of the backbone for service stability and an LNG supply point enabler.

The energy transition initiative toward the Net Zero Emission target by 2060 will also extend to the electricity sector, one of the largest sources of demand. According to Bappenas' energy transition roadmap, the use of natural gas is seen as crucial during the energy transition period, particularly from 2025 to 2029. Various national initiatives will be developed alongside technological advancements and regulatory changes, including the restriction of coal-fired power plants. As such, natural gas is expected to play a significant role in meeting future energy demands.

PGN will continue to develop gasification programs in various strategic sectors that convert energy based on natural gas, including the national electricity sector.

For its role in fulfilling energy needs for the electricity sector, PGN received the Indonesian Electricity Honorary Award on Thursday, September 27, 2024. PGN was recognized in the category of Energy Producers/Suppliers for its commitment to promoting the use of gas in power plants.

“PGN will continue to ensure the reliability of gas supply and infrastructure to increase the confidence of natural gas users, including in the electricity sector, which requires sustainable business and investment. The increasing use of natural gas in the electricity sector will also provide a multiplier effect for the national economy and contribute to reducing carbon emissions,” concluded Ratih.

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