Indonesian Political, Business & Finance News

PGN Builds Injection Point Infrastructure to Integrate New Gas Supplies

| | Source: REPUBLIKA Translated from Indonesian | Energy
PGN Builds Injection Point Infrastructure to Integrate New Gas Supplies
Image: REPUBLIKA

PT Perusahaan Gas Negara (PGN) is building injection point infrastructure to integrate various new gas supply sources. The infrastructure is designed to collect gas from coalbed methane (CBM), biomethane, and synthetic natural gas (SNG) before it is channelled into the existing transmission pipeline network. This move is part of PGN’s strategy as Pertamina’s Gas Subholding to optimise the utilisation of domestic gas resources, including unconventional sources. The integration of these diverse supply sources is expected to strengthen the reliability of gas supply for industrial and power generation customers. PGN President Director Arief K Risdianto stated that the injection point development is designed to maintain supply stability while harnessing available natural resources, particularly in South Sumatra. The company is developing CBM in Tanjung Enim, alongside biomethane from palm oil mill effluent and SNG as alternative gas sources. According to data from the Directorate General of Oil and Gas, the CBM potential in the area is estimated at 9.7 TCF (original gas in place) with an estimated value of USD 15.4 billion. PGN has prepared a gas utilisation scheme with distribution projected to increase gradually from 1 MMSCFD to 25 MMSCFD.

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