Wednesday, May 29, 2024

Indonesian consortium to distribute eco-friendly biomethane via PGN’s gas pipeline network

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Journalist IBP


Mahinda Arkyasa



An Indonesian consortium led by Harry Budi Sidharta, PT Pertamina Gas Negara Tbk (PGN)’s Director of Strategy and Business Development, is set to utilize the natural gas pipeline network of PGN to distribute biomethane derived from Palm Oil Mill Effluent (POME) in South Sumatra.

The project will not only serve the industrial gas needs and domestic customer demands in Indonesia but is expected to expand its operational scale throughout Sumatra and Kalimantan. The goal is to meet the bio-LNG demands, serving as bunker fuel and for export to Japan.

“This venture underscores the commitment of the Pertamina Group and its partners, including JGC, INPEX, and Osaka Gas, to drive renewable energy development,” Harry emphasized.

Established in 1928, JGC Holdings Corporation is a global engineering company headquartered in Yokohama, Japan. formerly JGC Corporation, and before that Japan Gasoline Co.

While, INPEX (International Petroleum Exploration) a state-owned company from Japan is one of the world’s great energy production corporations producing and delivering clean, efficient and reliable natural gas for the Asia-Oceanic region. Founded in 2008, following the merger of INPEX, Teikoku Oil and INPEX Holdings.

Furthermore, Osaka Gas, a gas company from Japan established in 1897. The company engage in upstream, midstream and downstream energy projects throughout the world, including LNG terminals, pipelines and independent power projects, particularly in Southeast Asia, Australia and North America.

The production process will capture methane gas emissions released into the atmosphere from POME, purify it into biomethane, and distribute it through the existing natural gas pipeline network and infrastructure to customers in Indonesia.

Biomethane project aims to achieve multiple benefits

The Biomethane project aims to achieve multiple benefits, including reducing methane gas emissions, lowering carbon emissions, and fulfilling Indonesia’s natural gas demands. Osaka Group will employ biogas purification technology to support biomethane production.

Furthermore, Osaka Group brings valuable experience in biomethane pipeline injection and expertise in natural gas sales to promote biomethane in Indonesia, contributing to CO2 emissions reduction both in Indonesia and Japan.

Harry explained that natural gas is a cleaner energy source, reducing emissions by up to 40%, and it will play a vital role in helping Indonesia achieve its emission reduction target of 377 million tons of CO2 by 2035.

“This project will contribute to addressing environmental challenges while advancing new and renewable energy development, using POME as an environmentally friendly energy source,” said Harry Budi Sidharta.

Journalist IBP


Mahinda Arkyasa




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