PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, is working on several strategic gas pipeline projects, including the Cisem Phase II project in which PGN will synergize with the government to distribute gas from East Java to West Java.
“There is a new business initiative for the development of the Cisem II Pipeline. We will build a Tegal-Cilacap distribution pipeline to Refinery Unit IV Cilacap with a length of 130 kilometers,” Rosa Permata Sari, PGN’s Director of Strategy and Business Development, said in statement as quoted on Friday, July 12, 2024.
In an effort to distribute gas from the Natuna Field to the domestic market, PGN will carry out a strategic project in the form of the WNTS-Pemping gas pipeline.
In addition, other projects such as the gas infrastructure project at the Tuban refinery and the construction of pipeline infrastructure to support fertilizer factories in Eastern Indonesia.
Meanwhile, the location of the pipeline project is not only in Java, other projects such as the Dumai-Sei Mangke Pipeline through the support of the State Budget (APBN); Duri-Balam Pipe, Duri-Petapahan Pipe; Bangkanai-Balikpapan Pipe and Bintuni-Fakfak Pipe.
Through these methods, PGN hopes to close the gap in supply sources caused by unconnected pipeline infrastructure.
“PGN is committed to maintaining supply security using infrastructure integration. On the other hand, we are developing strategic projects that are adaptive to fill future business opportunities. Of course by considering the right and efficient logistics scheme,” said Rosa.
PGN also plans to develop a liquefied natural gas project, which is based on the projection of future natural gas supply which will be dominated in the form of Liquified Natural Gas (LNG) according to Indonesia’s geographical conditions.
In supporting this, PGN will continue to strengthen the LNG infrastructure so that it can contribute to balancing domestic natural gas supply and demand.
One of the infrastructure projects is the revitalization of the Arun LNG Hub Tank, which is located in a strategic location close to the Southeast Asian and South Asian LNG markets.
“Pertamina has aspirations to develop the Arun LNG terminal into an LNG Hub Leader in Asia. One of the initial stages that PGN has started with the revitalization of one of the tanks, namely F6004, since the end of 2023 and is targeted to be completed by the end of 2024,” said Rosa.
As a strategic archipelagic country, the shipping scheme is also a feasible step for the Eastern Indonesia region when looking at the geographical conditions.
Rosa explained that PGN’s efforts require synergy that is in line with the interests of all stakeholders, the government and downstream natural gas users.
“With optimism in facing dynamic challenges, the balance of supply and demand is expected to occur in 2030. PGN also encourages new users to continue to grow,” he said.
