Jakarta – PT PGN Tbk (Perusahaan Gas Negara) is optimising LNG (Liquefied Natural Gas) regasification as a strategic solution to support national industrial gas needs, the company said on Monday, January 6. This step was taken to overcome the constraints of the decline in pipeline gas supply in various strategic areas, such as central Sumatra, Lampung, and western Java.
“Sustainable natural gas supply is key to supporting national industrial growth. Amid a decline in pipeline gas supply, we rely on LNG regasification to ensure customers’ energy needs are met,” said PGN Corporate Secretary Fajriyah Usman in a press release on Monday, January 6.
Since mid-2024, PGN has begun distributing LNG-regasified gas sourced from domestic allocations, including Tangguh, Bontang, and Donggi Senoro. This step answers the challenge of pipeline gas availability, which is expected to become increasingly critical by 2025.
“With LNG regasification, we have succeeded in delivering reliable energy to customers, including through three cargoes of domestic LNG allocations provided by the government,” Fajriyah explained.
LNG regasification converts LNG back into gas form, allowing PGN to reach customers in inaccessible areas by conventional pipelines. This technology provides flexibility and ensures energy sustainability for the industrial sector, which is the backbone of the economy.
PGN coordinates with the government and regulators to ensure strategic policies support national energy security. Fajriyah states this collaboration is important to balance industrial needs and available energy supply.
Although regasified gas has a different cost structure than pipeline gas, PGN remains committed to maintaining the economics and competitiveness of its customers. Innovative solutions continue to be developed so the industry can get natural gas at competitive prices without sacrificing sustainability.
“Natural gas from LNG regasification has its challenges in terms of cost, but we strive so that customers do not feel a significant impact. This is part of our commitment to support energy security while encouraging national industrial growth,” said Fajriyah.
With LNG regasification as the main solution, PGN hopes to strengthen Indonesia’s position as an energy-independent country while ensuring the industry remains competitive globally. (Hartatik)
