Optimizing Domestic Gas, PGN Targets Andaman Gas Utilization Opportunities at IAF 2024

Nusa Dua – PT PGN Tbk as Pertamina Gas Subholding has received a cooperation opportunity to optimize the potential supply of natural gas from the Andaman Block from the Indonesia – Africa Forum (IAF) 2024. So in addition to international cooperation opportunities for the development of low carbon business, PGN also receives cooperation in order to increase domestic energy security.

PGN's Director of Strategy and Business Development Rosa Permata Sari said that her party is looking forward to the potential supply from the Andaman Block to meet diverse demands. The potential supply from the Andaman Block ranges from 2 – 5.5 TCF.

"With the planned construction of the Dumai – Sei Mangkei Pipeline (APBN funds), the gas pipeline infrastructure in Sumatra will be increasingly integrated to utilize Andaman gas. For PGN, the Dumai – Sei Mangkei Pipeline will increase the flexibility of natural gas distribution to potential demand," explained Rosa, 8/9/2024.

Several potential demands are in the North and Central Sumatra regions, including power plants, fertilizers & smelters, refineries and industry. There is potential for new plant development, including for blue ammonia, Inalum's smelter, Dumai RU, and methanol, so the need for natural gas is projected to increase.

In addition, with the existence of the Andaman Block which is close to Aceh, there is potential for utilizing the Arun facility. PGN's subsidiary, PT Perta Arun Gas (PAG), has conducted an initial study for the potential utilization of 2 Arun LNG Trains. The two trains are train 4 and train 5 with an estimated EPC duration of 30 months. Both PGN and PAG will continue to confirm the gas composition for further evaluation.

"In the near future, we will conduct intensive discussions regarding the plan to utilize Andaman's gas potential. In the discussion later, the estimated volume and long-term gas production time will also be presented based on current conditions," said Rosa.

PGN has high hopes that the potential utilization of natural gas from the Andaman Block can be realized. The gas potential from Andaman is actually also related to PGN's needs amidst the declining conditions in several existing gas pipeline wells, because they are entering a natural decline phase.