PGN Expands LNG Utilization to Meet National Gas Demand

PT Perusahaan Gas Negara Tbk (PGN), a Subholding Gas of PT Pertamina (Persero), continues its efforts to balance national gas supply and optimize gas utilization for industries, with a focus on the provision of Liquefied Natural Gas (LNG).

Ratih Esti Prihatini, Director of Sales and Operations at PGN, emphasized the importance of LNG as a solution for meeting the demand for natural gas, often hailed as the energy of the future. She highlighted LNG's flexibility in transporting natural gas from sources located far from gas pipeline infrastructure and gas demand, speaking at the Customer Business Forum on Wednesday (6/3/2024).

The Ministry of Energy and Mineral Resources (ESDM) has noted that the current demand for natural gas cannot always be met by existing sources connected to gas pipeline infrastructure due to natural decline in production. For example, the gas supply source for PGN from the Corridor Block in South Sumatra has experienced a decline, supplying only approximately 440 million standard cubic feet per day (MMSCFD) of natural gas at the beginning of 2024 compared to over 500 MMSCFD in previous years.

Ratih emphasized that LNG serves as a vital solution for balancing national natural gas demand amidst increasing industrial demand, complementing PGN's efforts to fulfill customer needs and optimize natural gas utilization as a transitional energy source. With PGN managing 90% of the national gas infrastructure, including pipelines and non-pipelines such as Floating Storage Regasification Unit (FSRU), the company remains committed to providing reliable, competitive, and sustainable energy services.

While LNG is not a substitution for piped gas, PGN will continue to optimize piped gas volume allocation. Ratih noted that LNG prices tend to fluctuate due to market mechanisms, unlike the relatively stable prices of piped gas. Additionally, the LNG distribution chain involves additional processes such as cooling, transportation, storage, and regasification, although LNG remains environmentally friendly and more efficient than other fossil energy sources.

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