Not Just Gas: PGN Group Successfully Develops Other Energy Infrastructure

Jakarta – PT PGN Tbk, as the Subholding Gas of Pertamina, is ready to support the Pertamina Oil and Gas Holding in providing energy infrastructure, including the construction and operation of facilities for gas, LNG, crude oil, fuel oil, and renewable energy. This is supported by the competencies and portfolio of the Subholding Gas, which extend beyond the management of natural gas infrastructure to include other energy infrastructures as well.

PGN subsidiaries play a significant role in this portfolio, namely PT Pertamina Gas (Pertagas) and PT PGN Solutions (Pgasol). Their expertise supports Subholding Gas in delivering end-to-end energy distribution services with a focus on safety and security. These services include the provision and operation of infrastructure as well as Engineering, Procurement & Construction (EPC) services. EPC involves the construction phases of a project, encompassing system planning, procurement of goods and services, and construction execution.

Pertagas has built and operated crude oil pipelines extending over 605 km, including the Tempino-Plaju Oil Pipeline in the Central Sumatra Operation Area and the Rokan Oil Pipeline in the Rokan Operation Area. Pertagas has also been entrusted as the operator of the Cirebon-Semarang Gas Pipeline Phase 1 (Cisem 1), constructed by the Ministry of Energy and Mineral Resources (ESDM).

Upcoming infrastructure projects include the construction of the Cikampek-Plumpang Fuel Distribution Pipeline, spanning 96 km and expected to be completed within three years. This project, in collaboration with Pertamina Patra Niaga, aims to distribute 4.6 million kiloliters annually.

Pertagas is committed to optimizing its expertise in pipeline operations and maintenance, as well as its certified human resources (HR). As of the end of September 2024, Pertagas recorded a safety milestone of 105,142,028 safe working hours.

In addition to Pertagas, PGN Solution, a PGN subsidiary focused on providing EPC services, has completed several projects, including the Rokan Oil Pipeline EPC Project, Senipah-Balikpapan Gas Pipeline, and Sumatra Operation Construction Service Work Unit Rate (WUR) Earthwork Packages 1 and 4 in Rokan. PGN Solution also has a portfolio in non-oil and gas pipeline infrastructure, such as the Umbulan SPAM Drinking Water Pipeline Project. These projects often face challenges, including difficult access to construction areas, permitting processes, and more.

Currently, Pgasol is working on the Pengapon-Boyolali Fuel Distribution Pipeline project in collaboration with PT Pertamina Patra Niaga. Construction began in June 2023, with 57.33 km completed out of the planned 69 km, targeted for completion by Q1 2025.

PGN Solution is also involved in the construction and maintenance of large-scale national energy infrastructure projects. These include the EPC project for the LNG Terminal in Teluk Lamong, East Java, and the revitalization of LNG tanks in Arun. As of now, PGN Solution has achieved 100,388,415 safe working hours.

In the renewable energy sector, PGN has several prospective projects, including biomethane gas distribution in Sumatra.

“The portfolio of energy project development by Subholding Gas Group prioritizes high safety standards. Project effectiveness is also a priority to achieve optimal results, meeting time and cost targets for energy resilience and efficient energy distribution across various regions,” said Harry Budi Sidharta, Director of Infrastructure and Technology at PGN (20/10/2024).

“As Subholding Gas, we also emphasize the importance of transparency in all processes related to the construction and operation of ongoing energy infrastructure. We are fully committed to supporting broader collaborations in providing safe and reliable energy distribution infrastructure services that deliver added value to all stakeholders,” Harry added.

Harry believes that PGN Group has a strong portfolio in energy infrastructure development and is ready to undertake other energy projects across Indonesia. This includes opportunities to form strategic partnerships to accelerate energy provision for the public, supporting the realization of energy security in Indonesia.

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