State gas distributor Perusahaan Gas Negara, or PGN, continues to aggressively develop the national gas infrastructures. Eighty percent of the gas piping network is built and operated by PGN. (Photo courtesy of PGN)

PGN's Additional Gas Supplies From HCML to Get Going Next Month


APRIL 27, 2017

Jakarta. State gas distributor Perusahaan Gas Negara, or PGN, expects additional gas supplies to start flowing next month from Canadian-Chinese joint venture Husky CNOOC Madura Limited, operator of Madura Strait oil and gas block, to meet the demand in East Java.

PGN commercial director Danny Praditya said HCML will deliver its gas gradually, starting with 20 million standard cubic feet per day (mmscfd) until the flow reaches 100 mmscfd.

The additional gas supply will come from Madura Strait's BD gas and natural gas field off the coast of East Java. The gas will enter PGN's existing infrastructure in Pasuruan.

"HCML will supply gas for 20 years," said Danny, adding it will reach customers in Surabaya, Gresik, Sidoarjo and Mojokerto.

The additional supply should also attract more investment to the province.

The state-controlled company has already established the so-called "PGN 360° Integrated Solution," which offers various natural-gas-based services.

Danny said the integrated logistics means PGN has successfully merged gas piping network to deliver gas from other sources. Aside from this, the company aslo boasts a compressed natural gas fleet and liquified natural gas delivery trucks to supply the locations beyond the piping network.

PGN vice president for corporate communication Irwan Andri Atmanto said that while the company is ramping up its gas supply, it also becomes more aggressive in developing gas infrastructure in the province.

PGN is currently developing a 141-kilometer gas pipe connecting three industrial cities – Gresik, Lamongan and Tuban.

"PGN has been committed to opening new opportunities for natural gas users to increase its consumption on the domestic market," Irwan said.

The company supplies natural gas to nearly 1,700 large manufacturing companies and power plant developers.

It has nearly 2,000 commercial clients — hotels, restaurants, hospitals, small and medium enterprises — and delivers gas to 204,000 households in North Sumatra, South Sumatra, Riau Islands, Riau, Lampung, Jakarta, Banten, West Java, Central Java, East Java, North Kalimantan and Sorong in Papua.

In East Java alone, PGN serves 27,170 households, 209 commercial customers and 475 industrial customers.

The 7,200 kilometer gas piping built and operated by PGN makes up about 80 percent of all downstream gas pipe infrastructure nationwide.

PGN also operates two floating storage regasification units, 11 natural gas filling stations and five mobile refueling units (MRU).

"It is the PGN's initiative to fund the development of the pipng network, without tapping into the state budget," Irwan said.