JAKARTA - In the midst of the current challenges, PT Perusahaan Gas Negara Tbk (PGAS) as Pertamina Gas Subholding focuses on strengthening the upstream, midstream and downstream business contributions to maintain the continuity of the Company's business. This was conveyed by the President Director of PGN Arief Setiawan Handoko in his meeting with PGN Equity Analysts and Investors at the PGN Central Office, Jakarta.

 "Many issues and challenges are being faced at this time, and behind that there is a sizable opportunity for PGN to maintain its viability as a national gas aggregator in the future," said Arief (23/7).

Responding to current challenges and to support the Company's performance, PGN focuses on optimizing various business sectors to support the Company's performance. From the upstream side, some time ago, PGN Saka managed to increase production volume of 2,200 barrels per day of oil with no water contain. Then there is additional gas that can be utilized for 20-40 MMSCF and still has a potential of 8,800-10,000 barrels of oil from the Pangkah Block

"In the future, the upstream business can contribute more to PGN and also support the increase in oil and gas lifting for the country," said Arief.

Arief explained that through Pertamina Group's synergy with Pertamina Hulu Rokan through the construction of the Rokan Oil Pipeline, it has contributed to the Company's revenue of US$ 11.8 million per month.

"In the field of developing and managing gas pipeline infrastructure, especially in the Sumatra area, it has been connected to Singapore, Batam, to West Java. Currently a pipeline is being built from Cirebon to Semarang where there is potential demand in the Central Java industrial area. We will also connect Sei Mangkei to Dumai. We also have Kalija and if WNTS is connected to Sumatra, it will increase gas supply if there is a shortage of supply and increase gas sales volume," explained Arief.

"Pertamina's refineries as part of the big family of Holding Oil and Gas, we also supply the gas, such as Cilacap, Balongan and Balikpapan. This is our captive which has the potential to become a big buyer. For the initial volume that will be distributed tens of MMSCFD of gas for Refinery Subholding," he said.

Arif added that in terms of beyond pipeline business development, PGN has started to build LNG storage through the LNG tank revitalization project in Arun where there is potential for captive tenants to store LNG.

PGN also continues to make maximum and intensive efforts related to the fulfillment of LNG Trading contracts carried out by the Company with a number of parties. “Challenge becomes a powerful opportunity. The stages have been carried out and there has been a bit of a green light regarding the LNG Trading contract. We hope to provide positive results and in the future this business will be able to support PGN's performance," said Arief

Arief also emphasized PGN's commitment to maintaining supply reliability. Intensive communication with the Government continues to be carried out in order to obtain gas supply allocations. Apart from that, the Liability Management program by carrying out PGN and Saka buyback bonds is carried out by the Company in an effort to maintain the Company's performance. (LK/LM)