Strengthen Domestic Supply, Gas to be Pertamina Main Business

6/7/2015 10:25:38 AM

JAKARTA – PT Pertamina (Persero) prepare to increase its capability in all of its integrated gas business chain and is hoped to strengthen domestic gas supply. As the energy company that control gas resources and keep on developing gas pipe infrastructure and LNG, this enables Pertamina to act as an aggregator of national gas that can reach supply sources from domestic to international and supplying in many demand destination in Indonesia.

Dwi Soetjipto, President Director of Pertamina stated that Pertamina gas business in the future will be more dominant compared to the condition nowadays. According to him, to ensure that the business prospect can be optimized, Pertamina and its subsidiaries in gas sector are aggressive to build natural gas infrastructure in Indonesia.

He cite as an example, Pertamina which is the pioneer of LNG business in the world through LNG Plant Badak and Arun is currently processed a development plan of several facilities of LNG receiver, in Java as well as Eastern Indonesia. The infrastructure will completed the current LNG receiver, which are FSRU West Java (operated by PT Nusantara Regas) and Arun Regas (operated by PT Perta Arun Gas), where the modification of LNG Plant to LNG Regasification in Arun is also the first in the World.

Through PT Pertamina Gas (Pertagas), Pertamina is preparing the pdevelopment project of gas transmission pipe line in Java Island which are Semarang - Gresik pipeline and Semarang - Cirebon Pipeline that if the project is completed Trans Java Pipeline will be realized. Other than Java, Pertagas also establish pipeline from Arun to Medan Industrial Area (KIM) and Special Economic Zone (KEK) in North Sumatra.

"Expansion of the gas infrastructure is needed, because Pertamina is determined to be the main pillar in realizing national energy independency. In line with the increased needs of gas from PLN and industry, Pertamina must be able to fulfill the needs of national gas may it be from domestic and international," said Dwi on the sidelines of his business meeting in the World Gas Conference 2015 in Paris.

Domestically, Pertamina now have produced gas of 1,63 billion feet square per day and have obtained gas allocation in a form of gas pipe such as Jambaran-Tiung Biru Gas and Terang Sirasun Batur as well as Domestic LNG from Bontang and Tangguh. As for the international sources, Pertamina obtain LNG import supplies from Cheniere Corpus Christi, United States for 1,5 million ton starting 2019 for 20 years, as well as from Africa for 1 million ton per year, starting from 2020 for 20 year.

Director of New and Renewable Energy Pertamina Yenni Andayani said that Pertamina will utilize the potential of national gas demand by ensuring the availability of gas supplies for domestic needs that increase each year. Yenni insists that the long term needs of gas in Indonesia is great, especially to fulfill the needs of power plants and industry.

"The project of power plant with 35 thousand MW capacity needs gas as its fuel in bulk, aside of coal, thermal heat, and other primary energy resources. The industry sector growth in line with national economic growth, and household sector and transportation becomes an important factor to the increase of national gas demand, Yenni explained.

With this kind of situation, according to Yenni that domestic resources is not enough to support the effort in fulfilling needs so import is necessary. Pertamina is currently in a negotiation process with several LNG producers to strengthen its supply domestically.

"What's important is that how the domestic needs of gas is fulfilled. With the control of gas infrastructure which continues to grow, we could hold an important role because Pertamina is able to absorb supply from multiple sources, then we can supply the gas at many demand points where our infrastructure is available."