PT Perusahaan Gas Negara Tbk (PGN) is going to develop the natural gas infrastructure by modifying the refinery built by Pertamina. This is to support the procurement of domestic natural gas supply.
PGN’s plan in will focus on 2 side, East and West. For the Eastern district, PGN will focus on gas pipelines infrastructure while in Western district will focus less on pipelines and more on Compressed Natural Gas (CNG) and Liquified Natural Gas (LNG). This project is the combine effort of Gas Sub holding, Shipping Sub Holding, and Refinery Sub Holding to increase their synergy between Oil and Gas Holdings inside Pertamina.
This infrastructure project includes the construction of LNG (Liquified Natural Gas) facility namely the Small Land-Based LNG Regasification Terminal in Cilacap and the construction of Gas Pipe Senipah to RU V Balikpapan Refinery. Regasification facility is used to convert LNG from its liquid for into its original form of gas for utilization of consumer. It is estimated that this regasification facility could ramp-up the gas volume to 111 MMSCFD. On the other hand, the gas pipes from Senipah to Balikpapan is estimated will support the distribution of gas for refinery efficiency, ramping up its volume to 194 MMSCFD. Both are targeted to start operation in 2023.
With this project it could fill the long need of gas supply from RU IV Cilacap Refinery and RU Balikpapan Refinery, supporting local economic growth and increase the ease of natural gas usage near the area. It could pose as an opportunity for LNG retailers and sellers, and companies to purchase natural gas or convert to natural gas in a more affordable in price and ready supply.