PGN Aggressively Expands Natural Gas Market in Eastern Indonesia

Makassar – PT PGN Tbk is intensifying efforts to accelerate the development of natural gas commerce in Sulawesi. With expertise in managing natural gas in the forms of pipeline gas, LNG, and CNG through an integrated approach, PGN is leveraging its strengths to massively expand the market in the region.

"In expanding the market in Sulawesi, PGN is aggressive and open to collaborating with strategic partners in providing both natural gas supply and infrastructure. So far, we are targeting industrial areas with significant demand potential to create a multiplier effect for the surrounding communities when natural gas is effectively utilized," said PGN President Director Arief Setiawan Handoko.

On Friday (10/4/2024), PGN inaugurated the reactivation of the Eastern Indonesia Region (KTI) as a testament to its commitment to developing the natural gas market in Central and Eastern Indonesia. Arief expressed hope that this reactivation would drive market expansion and facilitate the effective pursuit of emerging opportunities.

PGN continues to coordinate closely with the government, as its business development efforts in natural gas heavily depend on governmental support. With the Ministry of Industry, PGN is committed to supporting the ministry's short-term roadmap for developing natural gas infrastructure in Industrial Zones (Kawasan Industri, KI). Out of 50 prioritized KIs, 14 are designated for natural gas infrastructure development, several of which are located in Sulawesi.

The role of PGN's subsidiaries is crucial in market expansion efforts in Sulawesi. In addition to ensuring a consistent supply of natural gas and its supporting infrastructure, potential collaborations in other areas, such as EPC services, property, telecommunications, and other business activities, can also be explored.

Looking at its portfolio, PGN has demonstrated its competence as a leading energy provider in Sulawesi. Historically, PGN has distributed LNG to smelters in Southeast Sulawesi. The LNG, sourced from North Kalimantan, was transported using 25 units of 40-ft isotanks. This LNG distribution to Sulawesi proves that PGN’s "beyond pipeline" scheme can be realized and commercialized.

"Gradually moving forward, PGN is motivated to monetize natural gas through various transportation modes. The reactivation of natural gas operations in Sulawesi reflects PGN’s commitment to strengthening its presence, increasing the use of domestic energy, and providing environmentally friendly energy to Indonesia, especially in central and eastern regions," Arief concluded.

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