Strengthening Coordination & Ensuring Sustainability of Industrial Gas Utilization, PGN Holds Customer Business Gathering with Associations

Jakarta – PT Perusahaan Gas Negara Tbk (PGN), a Subholding of Pertamina Gas, is committed to meeting the natural gas needs of all industrial customers from various supply sources. To enhance communication and coordination between PGN and its customers, PGN held a customer business gathering on Wednesday (27/3), attended by 26 participants from 11 associations, including FIPGB, ASAKI, APOLIN, APGI, APINDO SUMUT, INAPLAS, IRGMA, APLINDO, APSyFI, and APKLP. This event was aimed at receiving feedback and suggestions from industrial customers regarding supply limitations, solutions for future demand fulfillment, aligning mutual understanding in supporting efforts to maintain industrial growth and competitiveness, the national natural gas distribution, and the national economy’s performance.

During the gathering, PGN’s Director of Sales and Operations, Ratih Esti Prihatini, explained that PGN always strives to optimize service to customers, even amidst operational challenges, such as planned (turnaround or regular maintenance) and unplanned shutdowns. “Just like in oil and gas field operations, where maintenance activities are essential and take some time, PGN also has maintenance periods to ensure reliability and provide dependable services and safety,” Ratih stated (27/03/2024).

With declining oil and gas field conditions, PGN continues to seek solutions for gas distribution to customers. “We want to ensure our customers’ businesses remain sustainable, and thus, we must communicate these real conditions to customers so that we can work together to find the best win-win solution for both parties,” she added.

According to customer surveys, approximately 72% of customers are single-fuel customers who use natural gas as the primary fuel source for their industrial machines. Therefore, PGN is continuously working on bringing in supplies from various sources, such as LNG, for both short-term and long-term needs. PGN is also in communication with all stakeholders, including the government, regarding this situation.

Furthermore, PGN is working to secure additional gas supplies to meet customer demands, especially in North, Central, and South Sumatra, Lampung, and Western Java. PGN is offering LNG as an alternative due to the natural decline of conventional pipeline gas supply sources.

“Indeed, LNG distribution requires a longer supply chain than pipeline gas, due to additional processes such as cooling, transportation, storage, and regasification,” Ratih explained.

“We do not require customers to use LNG, but we must provide this solution option given the decline in pipeline gas supply. We will continue to optimize the use of available pipeline gas from each supplier, and for any shortfall, we will offer LNG supplies as a solution to meet current industrial gas needs,” Ratih added. She emphasized that although LNG is available, PGN would prioritize and consider the use of pipeline gas, given the customers’ need for more competitive pricing.

PGN has also built an integrated gas infrastructure network, enabling it to optimize the allocation of pipeline gas and LNG supplies to meet demand in various regions. The hope is that, with the support of all stakeholders, including the government and regulators, PGN and industries can grow together and contribute actively to expanding the multiplier effect of industrial natural gas utilization to sustain national economic growth.

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