Pertamina Gas Subholding Consistency Expands Natural Gas Utilization Towards Net Zero Emission

Jakarta, January 14, 2022 - PT PGN (Tbk) as the gas sub holding of PT Pertamina Persero, has a commitment and consistency to achieve energy independence in Indonesia, through strengthening gas supply and expanding natural gas infrastructure. In the middle of the government and global community's efforts to achieve zero net emissions in 2050-2060, PGN sees this as an opportunity.

Natural gas as one of the fossil energy products that is proven to be clean, environmentally friendly, and efficient, will have a strategic role in the transition process towards zero net emission.

“Regarding renewable energy, we must look and consider the energy that is hoped to meet clean energy needs. The target for zero net emissions is 2050-2060. The transition period energy to achieve this clean energy target from fossils is gas. Europe is now starting to use gas again. This means that the demand for gas will be very significant. This is our opportunity to use gas, that is cleaner," said President Commissioner of PGN, Arcandra Tahar in the PGN Energy Economic Outlook 2022, (12/01/2022).

During the transition to renewable energy, the use of gas must be optimized. For this reason, innovation and technology are needed to increase the effectiveness and efficiency of gas transportation from one place to another.

“In the long run, ESG and green energy are under increasing pressure. We have to do energy diversification and start switching to renewable energy,” said Mirza Adityaswara, an economist who was also present as a resource person in the discussion.

In line with the two, the President Director of PGN, M. Haryo Yunianto said that as a company that focuses on the energy sector, PGN always opens space to optimize every opportunity that exists to meet energy needs, especially natural gas, which will certainly continue to increase.

The development of integrated natural gas infrastructure in the current energy transition period is expected to grow PGN's gas business as Pertamina's Gas Subholding. By 2022, PGN targets to increase gas trading management for the retail, commercial, and electricity sectors to more than 1,000 BBTUD, including the management of international LNG trading.

With the role of natural gas as transitional energy, PGN also encourages the growth of Subholding Gas commercial management to around 1,400 BBTUD by 2027.

From 2022-2027 it is projected that LNG supply will continue to increase. This is due to a decrease in the supply of gas from the existing pipeline. Moreover, it is also hoped that there will be an increase in retail LNG demand for areas far from the existing infrastructure. This demand will be supplied either through piped or non-pipeline liquefaction gas, as well as stranded gas utilization.

The industrial segment is still the largest backbone demand for Subholding Gas where synergies for supplying gas for refineries and smelters, including breakthroughs in technology selection and the provision of non-pipeline CNG/LNG retail modes by utilizing stranded gas sources, are urgently needed.

The transportation segment also grew in line with the increasing conversion of fuel into natural gas for the ship, logistics, land, and rail segments.

In addition, volume growth also comes from the household segment with a plan to add 1 million households per year until 2026.

"National and global energy management still continues to foster PGN's optimism going forward in developing infrastructure and increasing the use of natural gas in the current energy transition," Haryo concluded.

PGN strives to be able to contribute optimally to various global and national energy dynamics. Economic Energy will become increasingly strategic and PGN will play its strategic role to be actively involved in promoting national economic progress and growth.**