Jakarta—PT PGN Tbk, Pertamina’s gas subholding, sees the use of domestic liquefied natural gas (LNG) as a great opportunity to address the challenge of declining natural gas production from existing pipelines. This strategy is part of PGN’s efforts to ensure that the natural gas supply remains fulfilled amid the energy transition towards using New and Renewable Energy (NRE).
PGN’s Commercial Director, Ratih Esti Prihatini, said domestic energy consumption trends still depend on natural gas, especially LNG. “Domestic LNG is key for us to maintain the sustainability of natural gas supply and an adaptation step to the fast-changing dynamics of the energy business,” said Ratih in an official statement on Monday, November 25.
According to a Ministry of Energy and Mineral Resources report, natural gas utilisation for domestic needs has increased significantly, reaching 60% by mid-2024. The industrial sector drives Most of this consumption, with an average usage of 1,592 BBTUD in the last five years.
Ratih added that LNG is now also meeting the gas demand for power plants. “This reflects that LNG is not only a solution for the industrial sector but also for the stability of national electricity supply,” she explained.
Domestic LNG supply sources
To meet these needs, PGN utilises various domestic LNG sources, such as from the Bontang LNG facility, Tangguh, Donggi-Senoro, and new potential from the Andaman Field.
In addition, PGN also operates regasification facilities at FSRU (Floating Storage Regasification Unit) Lampung and West Java to support supply needs, especially in the western part of Java. Ratih said that by 2025, PGN is expected to require around 22-25 LNG cargoes (equivalent to 8-10 BBTUD per cargo).
Ratih highlighted the domestic LNG price as one of the challenges. Domestic LNG prices, which refer to the Indonesia Crude Price (ICP), are more stable than international market prices, such as the Japan-Korea Marker (JKM). “We continue to strive to establish long-term cooperation with domestic LNG providers to maintain price and supply stability,” he said.
In addition, PGN also utilises uncommitted LNG cargoes to cover supply deficits due to disruptions in production wells or planned maintenance from pipeline gas suppliers.
Ratih emphasised that PGN is committed to ensuring natural gas’s long-term availability through optimising existing facilities and cooperation with stakeholders. (Hartatik)
