Optimizing Natural Gas Infrastructure Integration, PGN Continues to Increase Gas Utilization to 70 BBTUD in Central Java

Semarang, 18/07/2024 – PT PGN Tbk, as Pertamina’s Subholding Gas, continues to increase the utilization of natural gas in Central Java through the integration of natural gas infrastructure in the region. The integration of this infrastructure has significantly boosted gas absorption from 48 BBTUD to 60-70 BBTUD.

One of the key supporting elements for the infrastructure integration in Central Java is the collaboration between the government through the state budget (APBN) and business entities, including the Onshore Receiving Facility (ORF) Tambak Rejo and the distribution network in Central Java. This ORF facility is operated by PGN’s Subholding Gas affiliate, PT Pertamina Gas (Pertagas).

Natural gas flows from PEP Jambaran Tiung Biru through the Gresik - Semarang pipeline (Gresem), where the pressure and distribution are managed at the ORF Tambak Rejo facility. From there, it is directed to the Tambak Lorok power plant and various commercial and residential customers in Semarang-Demak. Gas also flows to the Batang Industrial Complex and the Kendal Special Economic Zone, optimizing the use of the Cirebon Semarang Phase I Pipeline (Pipa Cisem I). This includes service to the Tambak Aji Industrial Zone and Wijaya Kusuma Industrial Zone.

In total, natural gas supplies one power plant, 31 industrial and commercial clients, and 29 small customers. The volume absorbed by industrial customers has increased from 0.5 BBTUD to 3.5 BBTUD.

PGN's Director of Infrastructure and Technology, Harry Budi Sidharta, emphasized that the integration of the Gresem Pipeline, Cisem I Pipeline, and the Subholding Gas distribution pipelines has resulted in an optimized natural gas service, designed to accommodate high-demand needs. Thanks to this integrated gas infrastructure, gas absorption in Central Java has increased, building upon PGN’s pioneering infrastructure work in the region over the past 10 years, initially using CNG transport mode.

"This infrastructure integration underscores PGN's commitment to meeting the needs of new areas and distributing the benefits of natural gas sourced from domestic wells to domestic users, fostering new economic hubs," said Harry.

According to Harry, the readiness of the infrastructure is crucial in supporting the commercialization of natural gas to customers. PGN continues to prioritize safety in the operation of all natural gas infrastructure assets.

"PGN fully supports the development of Cisem Phase 2 by the government through the APBN, which is expected to unify gas supply and demand between East and West Java. This will allow for operational flexibility from East to West and vice versa, ensuring supply stability and meeting demand across Java," explained Harry.

As Pertamina’s Subholding Gas, PGN continues to ensure that its portfolio remains in optimal condition, focusing on the development of integrated natural gas services that connect gas networks across Java. "Reliable natural gas supply, delivered efficiently through both pipeline and beyond-pipeline infrastructure, is our focus. This enables the multiplier effect of natural gas utilization to boost the economy of both communities and the nation," Harry concluded.

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