PGN Drives Gas Downstreaming to Enhance Value-Added Products

Expanding Beyond Fuel Applications

PT Perusahaan Gas Negara Tbk (PGN), as Pertamina's gas subholding, is committed to promoting the downstreaming of natural gas to create higher-value products. This initiative aims to expand the utilization of natural gas beyond its current primary use as fuel. According to Mirza Mahendra, Director of Strategy and Business Development at PGN, natural gas (CH4) can be further processed into various valuable products such as methanol, ethylene glycol, formic acid, and hydrogen. These products can be further developed into materials like ethylene for plastics and ammonia for urea and nitric acid production.

Supporting Green Economy and NZE 2060

The downstreaming of natural gas is closely related to the development of a green economy. As one of the fossil fuels with the lowest carbon emissions, natural gas plays a crucial role as a transition energy source towards achieving Net Zero Emission 2060 (NZE). PGN is preparing three main initiatives to support NZE and drive the green economy: 1) utilization of BioCNG from palm oil waste, 2) development of Carbon Capture Storage, and 3) digitalization for energy efficiency through their network. Additionally, PGN is exploring the development of hydrogen from non-fossil energy sources, positioning it as a potential future fuel.

Strengthening National Energy Ecosystem

While pursuing gas downstreaming, PGN remains committed to strengthening the national gas ecosystem through: 1) optimizing domestic gas utilization, 2) developing gas infrastructure in existing and new areas to unlock new demand, and 3) implementing integrated gas management to ensure affordable and equitable access. This comprehensive approach aligns with the government's vision of achieving energy independence and self-sufficiency, ultimately contributing to Indonesia's development goals for 2045.