PGN Invites Investors & Analysts to Visit Gas Operations in Central Java

Semarang – PT Perusahaan Gas Negara Tbk (PGN) with stock code "PGAS" continues to uphold its integrity in managing the national natural gas sector. The integration of infrastructure is ongoing to ensure comprehensive monetization of natural gas, including in the Central Java region.

PGN invited investors and stock analysts to visit its operations in Central Java on Thursday, September 26, 2024. The visit also included an overview of the prospects and potential PGN holds as the Subholding Gas of Pertamina.

The visit covered several strategic locations. After departing from the Semarang Area Office, the group visited the Tambak Rejo ORF and continued to the Batang Integrated Industrial Area (KIT Batang).

"Through this visit, we invite investors and analysts to see firsthand how PGN operates and remains committed to maintaining high standards in all aspects of our business. We also want to ensure that investors and analysts receive the latest information regarding PGN's business developments and the strategies we implement to face challenges and seize opportunities in the oil and gas industry," said PGN's President Director Arief Setiawan Handoko in his speech.

“The site visit to Semarang was very beneficial. As investors in PGAS, we gained insight into the CISEM 1 pipeline and received explanations about various ongoing developments in the company,” said Lo Kheng Hong, one of the investors who attended. He hopes that PGAS will become a wonderful company, continue to grow, increase profits and stock prices, and benefit the nation.

Arief explained that during the site visit, investors and analysts had the opportunity to witness part of PGN's growth pillar. In this context, PGN is developing and integrating gas infrastructure to meet the demand and its potential for continued growth in Central Java.

"PGN's market continues to grow, and Central Java is one of the growth hubs in the SOR 3 region. We are aggressive in developing infrastructure. Along with this aggressive infrastructure development, PGN’s market focus in the SOR 3 region is also on industrial zones," said PGN's Commercial Director, Ratih Esti Prihatini.

The development of the Gresik-Semarang natural gas infrastructure, which connects East Java and Central Java, has been completed by Pertagas and is operational to meet the needs of the Tambak Lorok Power Plant and industries in the Semarang-Demak area. Meanwhile, the Cirebon-Semarang Transmission Pipeline Phase I, built by the government and operated by Pertagas, has been operational since August 2023.

From this Cirebon-Semarang Phase I transmission pipeline, PGN then distributes gas through distribution pipelines to customers in the Kendal Industrial Area, Batang Integrated Industrial Area, Tambak Aji Industrial Area, and Wijayakusuma Industrial Area in Semarang. Currently, the total contracted volume with 28 customers along the CISEM Phase I pipeline is 13.4 BBTUD, equivalent to 11.2 million cubic meters per month. The number of tenants in these industrial areas will continue to grow, and so will the absorption of natural gas.

With supply sources from Jambaran Tiung Biru, the realization of gas distribution through the CISEM Phase I pipeline and the Tambak Rejo ORF is not only for industrial customers but also for small customers, hotels, hospitals, SMEs, and households in Semarang and Batang.

There will be a CISEM Phase 2 pipeline connecting East Java and West Java, where gas demand in West Java can be met by supply from East Java. PGN is also developing CNG clustering, which is a natural gas service for households using CNG in the Sleman area of Yogyakarta.

Currently, PGN has 203,754 household customers, 431 small customers, and 605 commercial-industrial customers in the Sales & Operation Region 3 (SOR 3). The total natural gas consumption for all customer sectors amounts to 262 BBTUD.

Additionally, RU IV Cilacap requires around 51 MMSCFD of natural gas, making it a significant demand potential. PGN plans to carry out regasification at the RU IV Cilacap refinery, in line with building gas pipeline infrastructure for the Tegal-Cilacap pipeline. The regasification at RU IV Cilacap is also aligned with the development of the CISEM Phase 2 pipeline and the planned integration of transmission pipelines on Java Island.

"PGN continues to maintain the reliability and security of supply to meet demand. We have mapped the future supply and demand potential as infrastructure develops. So, when production occurs in upstream, PGN can monetize its gas from both the midstream and downstream sectors," concluded Ratih.

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