With demand for natural gas continuing to rise and existing sources unable to keep up, PGN is seeking strategic solutions to ensure security of supply for its customers, and to prevent gas shortages in a number of regions.
PGN is currently looking for new gas supplies, primarily from locations close to existing infrastructure, as well as trying to obtain more allocation from the gas earmarked for domestic market usage.
Other options include the potential utilization of non-conventional sources such as Coal Bed Methane, and infrastructure development to expand existing distribution and transmission capacity, as well as to accommodate possible inter-mode gas transportation such as CNG and LNG.
Already underway is the construction of LNG Receiving Terminals using LNG Floating Storage and Re-gasification Terminal technology, in partnership with PT Pertamina (Persero), in West Java and Medan.
The LNG received through these terminals, will be regasified and distributed to power companies and industrial customers in fast growing areas. In the future, additional receiving terminals, spread farther afield, might play a role in bridging the gap between natural gas supplies and customers keen to develop their business or industrial area.
The challenge is clear, and PGN will meet it.
Liquefied Natural Gas (LNG) is natural gas that has been dried to remove water and processed to remove impurities, and then converted into a liquid by cooling it to an extremely low temperature of about 160 degrees Celsius below zero. This makes it possible to ship the gas to distant markets in a liquid form. Liquefied natural gas takes up about 1/600th the volume of natural gas in the gaseous state. Where moving natural gas by pipelines is not possible or economical, it can be transported by specially designed cryogenic sea vessels or road tankers.
Compressed Natural Gas (CNG) is made by compressing natural gas (which is mainly composed of methane) to less than 1% of the volume it occupies at standard atmospheric pressure. CNG is used in traditional gasoline internal combustion engine cars that have been converted into bi-fuel vehicles (gasoline/CNG). Natural gas vehicles are increasingly used in the Asia Pacific region, Latin America, Europe and the U.S. due to rising gasoline prices.
CBM is Coal Bed Methane gas (also known as CSM - Coal Seam Methane, or CSG - Coal Seam Gas) and occurs naturally within coal deposits. It is composed largely of the gas methane, the principal component of natural gas. A cleaner gas, in comparison to other alternatives, CBM burns more efficiently, produces fewer pollutants, and uses more effective extraction techniques.