Pertamina: 3 Pertamina Gas Subholding Strategic Projects Potential to Reduce 5 Million Tons of Carbon Emissions

Pertamina Gas Subholding, PT PGN Tbk, is committed to strengthening gas supply and expanding natural gas infrastructure as sustainable transitional energy. The commitment also prioritizes low emission development to support the government’s program to achieve carbon-neutral in 2060.

PGN plans to accelerate the fossil fuels transitional process to clean energy from natural gas through several featured projects. The first is the power plants’ regasification program in most parts of eastern Indonesia. Based on the Decree of the Minister of Energy and Mineral Resources No. 2 of 2022, power plant regasification will be carried out in 33 locations, with a total of 1,198 MW capacity and the use of 83.74 BBTUD natural gas.

“Through the regasification project, which converts the use of fuel and coal from natural gas to electricity, PGN is optimistic it will achieve zero net emission. If this regasification is carried out fully, it can reduce the emission of 650,000 tons of CO² annually. Combined with the Refinery and Jargas projects, the total use of gas can reduce emissions by around 5 million tons of CO² annually,” explained PGN Sales and Operations Director Faris Azis, 10/6/2022.

Second, in addition to PLN’s power plants, conversion to natural gas will continue through gasification at the refineries located at RU II Dumai, RU III Plaju, RU VI Balongan, RU IV Cilacap, TPPI, GRR Tuban, and RU V. Balikpapan. “Hopefully, we can realize these projects that provide multi-benefit, namely gas as clean energy can replace fossil fuel. With a total of 560 BBTUD, the gasification refinery can reduce carbon emissions by up to 4.3 million tons of CO² per year,” said Faris.

The third is the use of natural gas in the household sector. Until now, 750 thousand household gas connections are spread across 17 provinces and 67 cities/districts. PGN has succeeded in providing energy solutions that are sustainable, clean, and easily accessible 24 hours.

“Government and Business Entity Cooperation (KPBU) target scheme of 4 million household connections by 2024. One million gas connections for the household sector can reduce carbon emissions by up to 60,000 CO² annually. This program can help the government reduce LPG imports and the cost of energy subsidies,” said Faris.

PGN is optimistic that the use of natural gas after the COVID-19 pandemic in Indonesia will increase. Natural gas is the cleanest fossil energy and is very appropriate to be used in the transitional energy process,” concluded Faris.