Supporting Clean Energy Provision in IKN, PGN Prepares Household Jargas

Jakarta, January 31, 2024 - PT PGN Tbk, as a Subholding of Pertamina Gas, is preparing household gas networks (Jargas) program development to support clean energy provision in the Nusantara Capital City (IKN). PGN is also ready to collaborate with various parties to build IKN’s natural gas infrastructure development.

Director of Sales & Operations of PT PGN, Ratih Esti Prihatini, expressed PGN's readiness to synergize in jargas development. She revealed this during a visit to IKN with BPH Migas last week.

The government entrusted Pertamina as an Oil and Gas Holding with the jargas development in the Government Center Area (KIPP IKN). Subsequently, Pertamina assigned PGN as the Gas Subholding for its implementation. It means that the jargas will be available in residences or official residences for ministers and employees in IKN. In the initial phase, jargas connections in IKN are planned for 166 towers (civil servant residences) and 34 ministerial residences.

"We are ready to be part of the solution for utilizing clean energy in IKN and expanding natural gas utilization for a greener environment and the multiplier effect for the environment, as well as society that can be optimized. Nevertheless, natural gas is the cleanest fossil energy that can be a transitional solution along with other clean energy utilization towards the Renewable New Energy era and achieving the 2060 NZE target," said Ratih (30/1/2024).

The jargas construction in IKN is planned to be carried out gradually. In addition to government residences, the gas distribution network is intended for commercial, government buildings, and other facilities. Later, natural gas distribution pipes will be placed in the public network or Multi Utility Tunnel (MUT). MUT will be built by the Ministry of Public Works and Public Housing (PUPR).

Natural gas will be supplied with Compressed Natural Gas (CNG) sourced from Balikpapan or Bontang in East Kalimantan. Currently, PGN has already begun construction activities in the field and is targeted to be completed by June 2024.

PGN's support for natural gas provision to IKN is based on the vision of clean energy provision in IKN and IKN policies stipulated in Law No. 3/2022, which includes a mixture of natural gas with hydrogen as the city gas source.

PGN's portfolio in East Kalimantan will continue to be developed so that it can reach IKN and support the buffer zone of IKN to expand and optimize clean energy utilization. One of them, PGN, through PT Pertagas, manages the integrated gas distribution, including the Senipah-Balikpapan Natural Gas Transmission Pipeline 20" along 78 KM. In the future, a new distribution network will connect the IKN gas distribution network with this Senipah-Balikpapan pipeline, making gas distribution more reliable.

Another development carried out by PGN is regarding CNG and LNG infrastructure for retail to distribute gas to the East Kalimantan region. PGN is ready to support reliable natural gas provision to support economic growth in the East Kalimantan region and always synergize with IKN authorities along with other stakeholders in planning and developing clean natural gas energy in IKN.

Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, revealed that the company continues to promote PGN's role as the Gas Subholding to optimize natural gas utilization in the transition from fossil fuels to Renewable New Energy. Gas can be a leading energy and solution in the energy transition phase.

"Currently, PGN will take various initiatives to expand gas utilization domestically. With the increasing number of household gas networks, the community will gain access to more diverse, guaranteed, and clean energy options," concluded Fadjar.

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.**