Integration & Aggregation of LNG Infrastructure and Commodities, PGN Launches Domestic LNG Utilization Services for Industry

Jakarta, May 22, 2024 - PT PGN Tbk has entered a new era in Liquified Natural Gas (LNG) commodity services to ensure continued domestic natural gas utilization. The "beyond pipeline" services will strengthen infrastructure integration to serve all customer sectors, including industry.

PGN has received additional gas supplies from LNG regasification starting in May 2024. The market interest in LNG is strong, proven by the initial industrial uptake of 15 BBTUD, which is expected to increase according to demand. This regasified gas supply can be distributed by PGN to existing and new customers.

Through LNG services, PGN also aims to support industries and retail sector growth, where gas demand is substantial for operations. LNG can be a viable option for industries and retail when pipeline gas needs cannot be fulfilled. PGN is committed to fulfilling the industrial sector’s energy needs, ensuring continued industrial growth, and providing a multiplier effect on the national economy.

"We hope that PGN's entry into the LNG era can become one of the most feasible solutions to meet future domestic market needs. Additionally, considering Indonesia's geographic nature as an archipelago, LNG distribution services are feasible to fulfill inter-island demand," said the Director of Sales and Operations, Ratih Esti Prihatini, on May 21, 2024.

PGN aims to realize its commitment to expanding natural gas utilization to new regions, particularly those without existing infrastructure or pipeline gas services. "PGN understands Indonesia's geographic conditions. Thus, an alternative gas distribution model, such as beyond the pipeline, is necessary. LNG is highly feasible for sustainability and maintaining supply reliability," Ratih stated.

The FSRU Lampung has long been operational to fulfill LNG and gas needs, with LNG regasification results from FSRU Lampung being distributed to the electricity sector. LNG delivery volumes from FSRU Lampung during January - April 2024 were 70,075 M³ on February 13, 2024, 134,006 M³ on March 12, 2024, and 133,990 M³ on April 18, 2024.

With the cooperation of all stakeholders and coinciding with PGN's 59th anniversary on May 13, 2024, LNG regasification gas from FSRU Lampung began to be supplied to industries, with increasing demand.

FSRU Lampung can maintain reliability and fulfill gas demand. Along with the integrated infrastructure of the South Sumatra-West Java (SSWJ) transmission pipeline, LNG processing at FSRU Lampung continues to grow in serving customer needs. In 2023, the average LNG delivery from FSRU Lampung was 54.07 BBTUD. And from January to April 2024, the average delivery was 56.03 BBTUD.

"PGN has been delivering regasified LNG from the integrated FSRU Lampung infrastructure with the South Sumatra-West Java (SSWJ) pipeline. When supply conditions fluctuate, FSRU Lampung and FSRU West Java serve as the backbone for service stability and enable supply points sourced from LNG," Ratih explained.

To strengthen future LNG services, PGN plans to add LNG facilities by building infrastructure hubs at several points, including Aceh, Arun, and Bontang.

"As Pertamina's Gas Sub-holding, PGN strives to manage and optimize LNG operations effectively. Not only to enhance energy availability and accessibility domestically, but LNG also serves as a sustainable and environmentally friendly energy source in the transition towards the 2060 Net Zero Emission Target," Ratih stated.

On another occasion, the Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, revealed that Pertamina encourages PGN to optimize gas utilization by developing integrated gas infrastructure.

"Gas infrastructure is crucial for expanding gas utilization as a transitional energy source," Fadjar emphasized.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social, and Governance (ESG) implementation across all Pertamina's business lines and operations.**