PGN Intensifies Efforts to Optimize LNG Supply Amidst Natural Gas Demand


PT Perusahaan Gas Negara Tbk (PGN), a Subholding Gas of PT Pertamina (Persero), continues its endeavors to balance the national gas supply and optimize gas utilization for industries, one of which is through the provision of Liquefied Natural Gas (LNG).

Ratih Esti Prihatini, Director of Sales and Operations at PGN, stated that LNG serves as a solution for meeting the demand for natural gas, often referred to as the energy of the future.

"LNG offers a more flexible solution for transporting natural gas from sources located far from gas pipeline infrastructure and gas demand," she expressed at the Customer Business Forum on Wednesday (6/3/2024).

Indeed, the current demand for natural gas, as conveyed by the Ministry of Energy and Mineral Resources (ESDM), cannot always be met by sources already connected to gas pipeline infrastructure.

Existing supply sources have experienced natural decline, as evidenced by the declining production of natural gas in wells that have been in operation for a long time.

An example is the gas supply source for PGN from the Corridor Block in South Sumatra, which only supplied approximately 440 million standard cubic feet per day (MMSCFD) of natural gas at the beginning of 2024.

Previously, this block was able to supply more than 500 MMSCFD of natural gas in 2022 and 2023. However, the actual gas distribution in 2024 decreased compared to 2022 and 2023, which reached 850 MMSCFD.

"Whether we like it or not, we must become accustomed to LNG as a solution for balancing the national natural gas demand amidst the increasing demand, especially for industries. This initiative is part of PGN's efforts to fulfill the natural gas needs of customers and optimize the utilization of natural gas as a transitional energy," Ratih explained.

"With the management of 90% of the national gas infrastructure in various transportation modes, including pipelines and non-pipelines such as Floating Storage Regasification Unit (FSRU), Land-Based Energy Terminal, SPBG, MRU, and LPG Processing Plant, as well as the ability to integrate all potential natural gas across the country in various types of gas molecules, PGN remains confident in serving customers with reliable, competitive, and sustainable energy services," Ratih emphasized.

Ratih asserted that the presence of LNG is not a substitution for piped gas. PGN will continue to optimize the volume allocation of piped gas, so in case of supply shortages and gas availability from suppliers, LNG will be the solution.

"Customers also need to understand that unlike piped gas, which has a relatively stable price, the price of LNG tends to fluctuate due to market mechanisms," she added.

Moreover, the LNG distribution chain is longer compared to the gas pipeline distribution chain, involving additional processes such as cooling, transportation, storage, and regasification. Nonetheless, despite being environmentally friendly, LNG remains more efficient than other fossil energy sources.

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