The Gas and New Renewable Energy (GEBT) sector is an increasingly important business sector to Pertamina considering its role in the future as a primary energy source to replace the role of oil and coal as energy sources. GEBT sector is controlled by the Gas and New Renewable Energy Directorate which is responsible for providing directions, policies and strategies throughout the gas business chain, integrating and coordinating the gas business activities in Subsidiaries, as well as approving and monitoring realization of investment projects executed by Subsidiaries, including business management of liquefied natural gas (LNG)and liquefied petroleum gas (LPG) based on appointment/assignment from SKK Migas and CNG (transport) sales. In the LNG business segment in Indonesia, Pertamina plays a role in two business aspects, as follows:

 

  1. As an owner of the LNG downstream business with an ownership in:
    1. Floating Storage and Regasification Unit (FSRU) at Jakarta Bay, West Java, with 60% share in PT Nusantara Regas, along with other shareholder namely PT PGN (Persero), Tbk.
    2. Perta Arun Gas which is a Subsidiary of PT Pertamina Gas as the operator of Arun Regasification & Terminal LNG.
  2. As a seller of LNG for existing contracts from Badak - Bontang refinery, including a contract extension for Japanese buyers. Pertamina also serves as the seller of the state’s LNG part for the contracts whose buyer is Tohoku Electric, Japan from Tangguh LNG refinery. Since 1977, Pertamina has developed the LNG market by operating Arun - Aceh and Badak - Bontang LNG Refineries. LNG sales Indonesia has penetrated the export markets in Japan, Korea and Taiwan.

 

In CNG and City Gas business segment, Pertamina built and revitalized CNG infrastructure to support a diversification program from BBM to BBG and reduced BBM subsidies based on the Government‘s assignment to Pertamina as a CNG fuel supplier and distributor. Going forward, CNG development is expected to maximize opportunities in the downstream as a way to develop the downstream business portfolio. Pertamina is assigned by the Government to manage the natural gas distribution pipeline network for households, known as City Gas established by the Government through the Directorate General of Oil and Natural Gas in the cities selected by the Government. To manage the City Gas business, Pertamina has assigned a Subsidiary owning a gas trading license, which is Pertagas Niaga. In the power and renewable energy business segment, Pertamina is committed to diversify its business into the new renewable energy segment to support of the Government‘s program for energy mix which targets the new renewable energy portion of 25% by 2025.