PGN to build natural gas infrastructure in Central Java

Jakarta (medialnews) – PT Perusahaan Gas Negara (PGN) and PT Jateng Pertro Energi (Jpen) have committed to providing natural gas supply and infrastructure in Central Java.

PGN Strategy and Business Development Director Syahrial Mukhtar, in his statement in Jakarta on Friday, said the market potential could grow further as demand is concentrated in existing industrial zones.

“PGN has several options for gas supply sources for Central Java, such as Jimbaran Tiung Biru, Saka Muriah and Lamong Bay LNG,” Syahrial said.

The distribution strategy used uses several modes, namely piped gas, compressed natural gas (CNG) and liquefied natural gas (LNG) as needed.

“This MoU should provide support for the provision of CNG infrastructure,” Syahrial said.

He explained that Central Java has favorable geographic potential which is flanked by two large provinces rich in gas supply and markets.

Apart from that, Central Java is also the destination of the two transport pipelines.

“PGN already has the infrastructure of the Gresik-Semarang transport pipeline and a gas supply allocation that can be distributed to industries in Central Java,” he said.

The distribution of natural gas for industries that have not been served by gas pipelines can use CNG or LNG modes.

Currently, PGN has distributed natural gas to 13 commercial industrial customers in the Aji added industrial zone and expanded to Wijaya Kusuma via piped gas and CNG, distributes natural gas to the Tambak Lorok plant and serves 7,093 homes.

On the other hand, the company finds that the economic growth of Central Java continues to grow alongside the increasing number of new industrial estates in Central Java.

There are several industrial zones, such as Batang Integrated Industrial Zone (KITB) and Kendal Industrial Zone (KIK) as potential markets for natural gas.

With all these capabilities, PGN strives to meet the natural gas needs of Central Java. The Gresik-Semarang transmission pipeline is estimated to be capable of delivering approximately 400 million standard cubic feet of natural gas per day (MMSCFD).

PGN is also completing the interconnection of the Gresem pipe with the Java Kalimantan pipe to optimize the distribution of natural gas, in particular the industrial sector in the Semarang and Kendal areas.

In addition, PGN is working to complete the Jumper Pipe from Tambak Lorok to Tambak Rejo. This pipeline is expected to be completed in the second quarter of 2021.

Once connected, the use of natural gas from the Kepodang field will be distributed to potential customers in Central Java.

“It is hoped that the gas from the Kepodang field can be used to generate the Kaligawe SPBG, so that it will make the distribution of CNG in Central Java more effective and efficient, because so far the CNG needs of the Central Java were supplied from East Java, “says Syahrial.

PGN is convinced that the integrated infrastructure can accelerate access to reliable natural gas in Central Java.

Synergy with Central Java Pertro Energi will further stimulate efforts to achieve fair and stable access to natural gas at a more efficient price in Central Java.

“PGN is ready to support and cooperate with local governments and regional business entities so that the common goal of increasing the competitiveness of Central Java industry can be achieved,” Syahrial concluded.

Journalist: Sugiharto Purnama
Editor: Budi Suyanto
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