Gaslink CNG Strengthens Pertamina Gas Subholding Natural Gas Services in Bali

Bali, August 21, 2022 – Subholding Gas Pertamina is committed to expanding natural gas use, especially Compressed Natural Gas (CNG) and reaching commercial-industrial sector that has not been reached by pipeline gas networks on the island of Bali. This time, one of Pertamina's Gas Subholding affiliates, PT Gagas Energi Indonesia (“Gagas”), presented Gaslink to strengthen gas distribution beyond the pipeline.

A Gas Sale and Purchase Agreement (PJBG) was signed between PT Gagas Energi Indonesia and PT Puri Saron, engaged in the hospitality sector, on Thursday (18/9) in Seminyak, Bali. The signing was carried out by Heri Wibowo as PCT Department Head, Sales and Operation II Gagas and I Nyoman Henry Arie Suarthana as the owner of PT Puri Saron.

The President Director of Gagas, Muhammad Hardiansyah, supports the Sub holding Gas group's efforts to integrate natural gas infrastructure in Indonesia, both through pipeline and non-pipeline infrastructure. Especially for areas that have not been reached by pipeline infrastructure, currently, the best choice is distribution using CNG or LNG.

“Bali Island is the right place for a pilot project for developing CNG retail in Indonesia, as well as a pilot area for a green environment. This conversion to CNG is expected to reduce government energy imports and subsidies. Besides being an energy that is always available and efficient, CNG is also a solution for meeting environmentally friendly energy," Hardiansyah said.

For the initial stage, the CNG Gaslink distribution in Bali for several customers engaged in the hospitality sector is estimated to reach 3,000 M³ per month. Meanwhile, Bali projected natural gas distribution could reach 250,000 M³ per month by the end of 2022.

“Previously, the Subholding Gas Group has also served natural gas needs in Bali through its affiliate PT Pertagas Niaga by distributing CNG of 5,000 m per month which is predicted to increase. It also distributed Liquefied Natural Gas (LNG) via ISOTank trucks for the hotel industry of 20,000 to 23,000 M³ per month. It means that the Sub holding Gas group and its affiliates are synergistic in accelerating natural gas utilization in the form of CNG and LNG through various gas transportation modes. In the future, the natural gas pipeline infrastructure strengthening is also expected to be realized soon," Hardiansyah said.

PGN, as Pertamina Gas Subholding, will develop the CNG market in the Bali area. Infrastructure development will be carried out aligned with market development to ensure reliable CNG distribution to the market in Bali, and a digitalization system will be developed to improve services.

Hardiansyah said that Gagas would continue to carry out its commitment to providing natural gas energy in new areas such as the island of Bali. In the future, Gagas will also begin to expand into other areas such as Palembang and Bangka.

“As a world-renowned tourist destination and creative industry, the environmentally friendly fuels that can support the Langit Biru program is one of Bali's main focuses. For this reason, Sub holding Gas is here to provide an alternative energy supply that is not only efficient but also environmentally friendly, especially for the tourism industry in Bali,” Hardiansyah explained.

The plan is that the distribution to Bali will be carried out by taking the gas source using the Gas Transport Module (GTM) from East Java, which will then be sent by sea. GTM will arrive at the transit depot or hub in Denpasar to be distributed using the Gaslink Cylinder.

Hardiansyah added that Gagas' efforts to get into the Bali market are an effort to strengthen the Subholding Gas role in expanding the natural gas use in Bali has been carried out.**