PGAS Liquefied Natural Gas

By administrator | July 13, 2020 | Infrastructure Transportation.

PGAS Liquefied Natural Gas. Perusahaan Gas Negara Tbk (PGAS IJ) will build a cluster of liquefied natural gas (LNG) infrastructure. The program was undertaken to prepare LNG supplies. As well as use in gasification power plants. PGN’s Director of Strategy and Business Development, Syahrial Mukhtar, reveal. That LNG infrastructure development is divide into three areas. Namely the West Area, the Central Area and the East Area.

Syahrial explain, the West Area will be built a hub in Arun Terminal to be able to supply gas needs. As well as in Nias, Krueng, and surrounding areas. In addition to Central Area. National Gas Company already has a Floating Storage Regasification Unit (FSRU) in Lampung. With a break bulking system to small vessels to supply small LNG carriers. So, Lampung FSRU can be brought to Kalimantan, Bali, NTT, and NTB, Syahrial add.

Meanwhile, in the Eastern Area an estimate Hub. It will be built in Ambon to serve Central and Eastern Indonesia. Such as Sulawesi, Maluku and Papua. Syahrial state, the implementation of LNG Infrastructure development was carry out. In a stimulant manner for the power plants that had been built. And divide into eight clusters. Namely the Sumatra Cluster. As well as West Kalimantan Cluster, and Bali Nusra Cluster 1.

Follow by Bali Nusra Cluster 2, Sulawesi Cluster, Maluku Cluster, North Papua Cluster, and South Papua Cluster. The Quick Win phase will be implement using follower operation patterns. At the Nias PLTMG, Tanjung Selor PLTMG, and Sorong PLTMG locations. This year is target for completion, said Syahrial.

Liquefied Natural Gas Target

The target is to provide a lower price than High Speed Diesel (HSD). At the plant gate plant of Perusahaan Listrik Negara (Persero). Estimate savings on the conversion of HSD usage. At the quick win stage are estimate at IDR 200 billion for PLN. We have agree with the PLN the most optimal logistics scheme.

The Quick Win Nias location uses a sea transportation scheme with LCT and isotank. Tanjung Selor uses land transportation by trucking and isotank, while Sorong uses a gas pipeline, Syahrial explain. For information, on February 27, 2020, PLN and Pertamina (Persero) have sign a Head of Agreement (HoA) relate to the supply and construction of LNG infrastructure for PLN’s power plants.

Pertamina also has appoint and assign PGN as Sub Holding Gas to carry out the supply and supply of the LNG infrastructure. Syahrial said, PGN had coordinate intensively with PLN to complete a commercial agreement for a period of 20 years for the quick win stage. Syahrial hopes that within no more than two to three years. The conversion program of the BBM power plant to natural gas has been realize.

Liquefied Natural Gas Investment

This project is also include in the National Strategic Project (PSN) and requires a very large investment. Furthermore, President Director of PGN Suko Hartono state that this step could strengthen PGN’s business structure as a gas subholding, by seizing business growth opportunities from increasing domestic demand, including electricity generation.

The use of natural gas for the electricity sector is also intend to help reduce dependence on import energy and fuel subsidies. In addition, it was PGN’s response in supporting the government’s program to target the improvement of the primary energy mix for the PLN power plant, while reducing greenhouse gas emissions, Suko said.

Liquefied Natural Gas Household. The gas network for households can bring a series of benefits, especially in terms of savings for the country and society. Unfortunately, even though it has been running for 10 years, only about 1% of households have been successfully drain by the gas network. Until now, the government still relies on assignments for State-Owned Enterprises.

Perusahaan Gas Negara as a BUMN gas sub-holding still supports the network development program. PGN President Director Suko Hartono said, in the period 2009-2019 537,936 Household Connection (SR) network had been built, spread from Aceh to Papua, even though there were only 17 provinces and 60 districts/cities. In total, only 1% of households have network.

Liquefied Natural Gas Consumption

If the population of Indonesia is 260 million and it is assume that one household is 4 people, so 537,000 house connections are around 0.9% or only 1%, Suko said. In accordance with the National Medium Term Development Plan (RPJMN), this year PGN was assign to build 316,000 SR network. However, there was a diversion of the budget for handling Covid-19, from IDR 3.5 trillion to IDR 1.4 trillion from the 2020 state budget.

So that the realization from the state budget became 127,864 SR networks that will be built in 23 districts/cities. Meanwhile, for next year, PGAS plans to build 734,000 SR network. With a value of IDR 8.1 trillion. In 2022, it rose again to 840,000 SR network with capital expenditure of IDR 9.2 trillion. However, starting this year it is possible to have a Government Cooperation with Business Entity (PPP) scheme.

In 2023 it is target to build 800,000 SR network at a cost of IDR 8.8 trillion. And the same amount in 2024. That way, until 2024 it is target to build a total of 4 million SR network. According to Suko, the construction of jargas brings a number of benefits. Starting from a decrease in LPG imports, savings in public spending to savings in LPG subsidies, he said.

Referring to the road map for network development according to the RPJMN 2020-2024, the use of jargas until 2024 could reduce LPG imports by USD 17.2 million per year, savings in public spending by up to IDR 0.3 trillion per year, and savings in LPG subsidies by up to IDR 3.3 trillion per year.