PT Perusahaan GAS Negara, Tbk (State Gas Company/PGN) was optimistic that the company’s performance will remain positive until end of the year. Performance achievement up to third quarter of 2012 has proven that PGN’s business is very solid. Financially, the company has successfully earned a USD1,83 billion income, or increases if compared to third quarter of 2011 at USD 1.63 billion. Meanwhile, PGN’s net profit grows by around 16.2% from USD 534 million to USD 621 million. From the operational side, up to third quarter of 2011, volume of gas distributed by PGN reaches 801 MMSCFD per day, or increases from the same period in 2011 at 785 MMSCFR). Volume of transmitted gas increases from 844 MMSCFD to 878 MMSCFD.
“We are happy that PGN’s business remains solid in the midst of the recent business development. We believe that the policy of the Minister of Energy and Mineral Resources could create a more conducive business climate in oil and gas sector, and this will become an opportunity for growth of PGM’s business in the future”, Hendi Prio Santoso, President Director of PGN, told Business News (11/29).
Increase of PGN’s performance is evident in the realization of some work plans in 2012. For example, through a company under a joint venture with Pertamina, namely PT Nusantara Regas, PGN has operated Floating Storage and Regasification Unit (FSRU) in West Java. The existence of FSRU could supply gas to the State Electricity Company (PLN) in order to create efficiency in PLN. Currently, PGN is starting construction of Floating Storage and Re-gasification Facilities (FSRF) in Labuhan Maringgai, Lampung. To realize the infrastructure project which is 100% owned by this company, PGN has signed an MoU with Hoegh LNG, Ltd and PT Rekayasa Industri (Rekin).
Construction of FSRF Lampung is set to operate by 2015. With a spending capacity of 240 MMSCFD in 20 years, FSRF Lampung will also be directed to supply gas to PLN and industry sectors in Lampung and West Java. “PGN will continually build gas infrastructure nationally to fulfill demand of industry sectors and PLN. Gas utilization has proven to create a maximum added value to industry sectors so their products are more competitive.
Up to third quarter of 2012, average price of gas produced by PGN is USD 8.45/MMBTU. The price is much lower then subsidized price of 3 kg of LPG for households which is at USD 10.38 MMBTU and price of diesel fuel which reaches USD 29.26 MMTU. Such a competitive price of gas has encouraged many industry sectors to use gas. Even, up to September 2012, around 97% of PGN’s gas is allocated to meet demand of industry sectors.
We are very happy that we can contribute to the increase of performance of national industry sector. With energy price becoming increasingly cheap, competitiveness or Indonesian products will also increase. The State Electricity Company (PLN) will increase power supply in South Kalimantan, especially in Batu Licin. Power excess from the power plant owned by PT MJIS strengthens power system in Batu Licin area distributed through medium voltage network of 20 KV from Batu Licin sub-station. Since synchronization on November 23, 2012, the power plant owned by MJIS has supplied 4.5 Megawatt (MW) of electricity to Batu Licin system. The power pant produces power energy by using gas as fuel from the rotary kiln. Power supply will gradually increase to 9 MW, and in December 2012 when the 2nd unit of power plant owned by MJIS will start operation, power supply will increase to 20 MW. Yuddy Setyo Wicaksono, President Director of MJIS, told Business News (11/28).
Power excess is a real proof of PLN’s attempt to increase power supply in South Kalimantan. And, this power plant is fired by non-oil fuel (BBM) so it is very helpful to us in saving operational cost.
Power excess from PT MJIS with a price of Rp 825/kWh, if it is operating with a capacity of 20 MW, will be potential to reduce BBM use in PLN at 38,500 kilolitre per year or equivalent to Rp 1 billion saving per day. Currently, PLN is constructing 150 kv power transmitter from Asam-Asam to Batu Licin, and it is expected that by January 2013 it will be connected to Barito power system serving electricity supply in South Kalimantan and Central Kalimantan.
Business News - November 30, 2012