59th Anniversary, PGN Affirms Expanding the Role of Natural Gas...

59th Anniversary, PGN Affirms Expanding the Role of Natural Gas as a Transition Energy - ANTARA News

Translated below from Antara News 13 May 2024 link above

Jakarta (ANTARA) - PT PGN Tbk, as the Gas Subholding of PT Pertamina (Persero), affirmed its commitment to expand the role of natural gas as a transition energy in commemorating its 59th Anniversary on May 13, 2024.

Pertamina's Director of Logistics & Infrastructure, Alfian Nasution, in his speech at PGN's 59th Anniversary Peak Celebration in Jakarta, Monday, said strategic plans had been prepared so that PGN could strengthen this role amid dynamic market conditions.

"At the current age, PGN is expected to be stronger and continue to be determined to build pipeline and beyond pipeline infrastructure, including LNG trading. In the future, PGN is Pertamina's hope in the energy transition. If you look at the energy trilemma, gas has very high hopes in the transition period," he said.

In the future, opportunities are still wide open. Moreover, supported by Pertamina's RJPP from the upstream side, gas production will increase quite significantly and PGN is expected to utilize it.

"PGN is also expected to further synergize with other subholdings, one of which is with C&T Subholding to help reduce LPG imports. Several pilot projects have been running in that direction, it is hoped that more gas networks and subsidized LPG (3 kg) can be substituted with natural gas networks. Thus, future strategies for gas transition can be more real," Alfian said in his statement.

On the same occasion, PGN President Commissioner Amien Sunaryadi spurred PGN Group to increase its presence in the community by expanding natural gas infrastructure connections in various regions.

"Let's improve the gas network connection in the future. Not all places are easily traversed by pipelines, therefore, gas distribution should be beyond pipeline or CNG," he said.

According to Amien, it is important for PGN to increase the use of CNG for quality jargas, considering that jargas is the top priority.

The development of jargas must be massive to occupy the CNG market leader and PGN's existence can be truly seen in the community.

"Let's work together, let's work fast and achieve the KPIs that have been proclaimed," Amien said.

PGN President Director Arief Setiawan Handoko expressed PGN's optimism in developing natural gas in Indonesia based on the Ministry of Energy and Mineral Resources note that the use of oil and gas still plays an important role in securing national energy supply in the future.

Especially natural gas, which is used as energy transition to net zero emissions by 2060.

PGN will continue to prioritize the integration of natural gas infrastructure development and increase natural gas utilization.

"In order to take the momentum of economic improvement, accelerate the energy transition, and the need to develop business segments or derivative products that support carbon emission reduction, PGN takes strategic steps outlined in three pillars of business development, namely Grow, Adapt, and Step-out (GAS). Seven National Gasification Programs will continue under the Grow pillar. Meanwhile, new programs such as LNG trading and developmentThe biomethane, CO2 transport, and downstream gas businesses will be included in the Adapt pillar and the Step-out pillar," explained Arief.

The industrial segment is estimated to continue to be the main support for natural gas demand, in line with the movement of industry and the booming economy.

The volume of household consumers has also increased in line with the target of adding 117 thousand connections by 2024.

In addition, PGN carries out business diversification through the development of subsidiary businesses by building Arun LNG Hub, developing clean and renewable energy businesses and optimizing upstream businesses.

PGN will also develop several LNG and mini LNG regasification projects to meet gas needs that have not been reached by pipelines.

This is a long-term strategy to strengthen supply in the future. PGN will also develop new businesses that primarily support NZE such as biomethane, petrochemical, hydrogen, and CO2 transport.

Currently, PGN manages 12,692 km of pipelines, up 10 percent from 2022 or an increase of 1,167 km and manages four LNG terminals.

From this infrastructure, PGN has distributed natural gas to 825,856 household, 3,103 industrial and commercial customers, and 1,976 small customers.

"We are optimistic that performance will remain good in the coming years, one of which is due to maintained domestic economic conditions. We stick to the main strategies. At the same time, we implement a risk management system, internal control and financial management that is disciplined and prudent," Arief said.

In carrying out these strategic steps, PGN realizes that it will face dynamics that have an impact on the company. Therefore, PGN will continue to ensure the management of the company's natural gas business based on the principles of sustainability and good governance.

"PGN is committed and consistent in realizing domestic energy independence during the energy transition period through strengthening gas supply and expanding natural gas infrastructure. PGN's readiness is also strengthened for the implementation of ESG and green energy through the selection of optimal technology in energy diversification and the transition to the use of renewable energy," said Arief.