The Volume of PGN Gas Distribution Has Increase by 1000% to Industry & Commercial Thanks to Pipeline Infrastructure Integration

PT PGN Tbk, a Subholding Gas Pertamina, continues to optimize the utilization of natural gas through the integration of its gas distribution pipeline network in Central Java. This is in line with the development of the Cirebon-Semarang I Transmission Pipeline (Cisem) and the Gresik-Semarang Transmission Pipeline (Gresem). This integration has resulted in a significant increase in the volume of natural gas distribution, particularly for industrial and commercial customers, growing from 300,000 cubic meters per month at the start of 2022 to 3 million cubic meters per month — a remarkable 1000% increase.

PGN’s Commercial Director, Ratih Esti Prihatini, explained that the gas supplied from this integrated pipeline system serves industrial, commercial, and power plant customers in the Semarang, Demak, Kendal, and Batang regions. Some major industries benefiting from this gas supply include PT Indofood Fortuna Makmur, PT Aroma Kopi Krim, and PT Rumah Keramik Indonesia.

“PGN will continue to optimize the management of natural gas and infrastructure, particularly in integration and aggregation efforts, to maximize the use of natural gas. This will drive growth in gas absorption. We hope that not only existing industries, but also new customers located near the integrated infrastructure, will benefit,” said Ratih on June 11, 2023.

PGN’s efforts to optimize downstream gas use and integrate infrastructure involve developing the gas distribution pipeline network in Central Java, with approximately 34 km of pipeline already built.

Ratih added that the integrated PGN distribution pipeline, connected with the Cisem and Gresem pipelines, will also offer flexibility in sourcing gas from multiple supply points. This will enable PGN to aggregate potential customers effectively.

In 2024, PGN is focused on completing infrastructure for contracted new customers, including PT KCC Glass Indonesia in Batang, with a gas demand of 8 BBTUD. Additional factories in Kendal and Mangkang, such as LBM, BTR, Matahari Tire Indonesia, and Sango Ceramic, are expected to begin with an initial gas volume of around 3 BBTUD in 2024. “As a result, we project that the optimized gas distribution through the Gresem-Cisem pipelines will reach approximately 14 BBTUD, or about 14 million cubic meters per month, by the end of this year,” Ratih concluded.

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