Pertamina's Gas Subholding Signs HOA with JPEN, Ready to Develop Natural Gas Market in Central Java

Semarang, December 7, 2021 – In order to actualize the supply of natural gas for Central Java, PT PGN Tbk as Pertamina Gas Subholding signed a Head of Agreement (HoA) in cooperation with PT Jateng Petro Energi (Perseroda) (JPEN) regarding the development of the natural gas market in the Central Java region. The HoA was signed by President Director of PGN M. Haryo Yunianto and President Director of JPEN Muhammad Iqbal and witnessed by Central Java Governor Ganjar Pranowo, (3/12/21).

PGN continues to make efforts to prepare natural gas distribution infrastructure as a milestone in fulfilling energy needs in Central Java. As the main choice, PGN has prepared a gas pipeline network to deliver natural gas to the customer's location. As a derivative, PGN has also prepared CNG and LNG with beyond pipeline modes to fulfill PGN's industrial, commercial, and household customers needs in Central Java.

Currently, PGN has served 13,961 household customers which spread across the cities of Semarang and Blora. Together with JPEN, this collaboration is expected to reach the potential customers of household gas around 31,800 SR located in Cilacap Regency, Semarang City, Semarang Regency, Klaten Regency, Solo City, and DI Yogyakarta.

Moreover, to fulfill and encourage the use of natural gas in new areas in Central Java, PGN will provide natural gas infrastructure through the expansion of SPBG capacity as a CNG Hub and natural gas marketing network. As a tangible form of PGN's efforts, the Kaligawe SPBG which is located in the Sayung area has been optimized, with a capacity of 1 BBTUD, that can serve the needs of all customer sectors.

"This collaboration is also important for the implementation of research and development related to technology and infrastructure that we will use in gas supply and natural gas utilization, both for industrial, commercial, and household customers in Central Java," said President Director of PGN M. Haryo Yunianto.

Haryo further explained that research and development include four important points. The first is the development of natural gas infrastructure by train owned by PT KAI and mini LNG storage for household customers, especially in the southern part of Central Java, such as Cilacap, Yogyakarta, Solo, and Klaten.

Second, the development of cold storage excess from the regasification process in the mini LNG storage, which will begin with a technical and economic feasibility study. The third is the development of Vertical Gas Liquid (VGL) or bottling technology as a mode for distributing LNG to PGN customer locations that are far from the distribution gas pipeline gridline.

"Fourth, is the selection of infrastructure and technology to initiate natural gas distribution patterns in Central Java Province through an investment sharing mechanism in order to absorb stranded source gas," added Haryo.

PGN as the Gas Subholding of PT Pertamina Persero continues to be committed in accelerating the economic development of Central Java by optimizing the use of natural gas as transitional energy.**