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PT Perusahaan Gas Negara (Persero) Tbk

www.pgn.co.id

Strong Commitment to Deliver


A Good Energy Solution

Strong Commitment to Deliver a


Good Energy Solution
Sustainable growth and development relies on a secure, sufficient and
reliable supply of clean, affordable energy.
Indonesia is fortunate to have significant reserves of natural gas, the largest
in the Asia Pacific region, even though it is not always located close to
where it is most needed. PGN has been transporting and distributing gas in
Indonesia for more than a century and half, bringing vital energy for power
generation, and industrial, commercial, and household use.
Today, PGN is building on the foundations so firmly established over many
decades and evolving from a gas transmission and distribution company
into an integrated energy solution provider, maximizing the utilization of
natural gas to meet the ever increasing and ever more challenging demands
of modern industry and society.
PGN is the leader, the specialist and the dominant player in an
underdeveloped market that has huge potential for growth into the future.
Natural gas is the clean energy source that will encourage Indonesias
development and that influences the lives of people everywhere, everyday.
PGN is the company that provides that energy, now and into the future.

PGN contiunes to encourage the amplification of the natural gas


industry chain as sustainable Good Energy Solution.

Who We Are

Vision

PGN Culture

To be a world-class energy company


in natural gas utilization

Our corporate culture represents the values and

results and being responsible for all decisions and

philosophies that everyone in the Company has

actions.

Professionalism
Having the right degree of competence to deliver great

agreed, forms the foundation we must build on, and the

Mission
To enhance the value of the organization for
stakeholders by:

direction we must follow, if PGN is to achieve its goals.

Continuous Improvement

Our corporate culture is defined in terms of five values,

Always seeking to do better through innovation, and

abbreviated as ProCISE, which incorporate 10 key

being adaptable to change.

behaviors.

Integrity
Strengthening the core business in natural
gas transportation and trading

Being honest with oneself and others, and ethical and

Developing gas manufacturing businesses

Safety

consistent in mind, word and deed.

Maximizing occupational health and safety through

Developing operational, maintenance and


engineering businesses associated with oil
and gas industries

discipline and consistency, and caring for the social and


natural environment.

Excellent Service
Profiting from the Companys resources and
assets by developing other businesses

Achieving maximum satisfaction for internal and


external customers by responding quickly, being
proactive, and providing excellent service.

approaching five decades


of serving the country

TIMELINE

1859

1998

PT Perusahaan Gas Negara (Persero) Tbk, more

In 1998 PGN successfully

usually referred to as PGN, or by its stock code

finished Transmission Pipe-

at the Indonesia Stock Exchange of PGAS,

line Grissik - Dorsal followed

is a state-owned company that has been

by the establishment of a

Pursuant to the provi-

leading the way in Indonesias gas industry

subsidiary in the transmission

sions of Law No. 40

since 1859, when it went by the name of Firma

line, PT Transportasi Gas

year 2007 regarding

L.I. Enthoven & Co.

Indonesia.

Limited LiabilityCompa-

2008
About PGN

nies, and in connection

1984

1994

PN-GAS converted into

Companys change of sta-

2006

public service enterprise,

tus was accompanied by a

South Sumatera -

Perusahaan Umum Gas

broadening of the scope of

West Java (SSWJ)

Negara.

its business to

pipeline inaugurated by

incorporate not just natural

President of Indonesia

gas distribution but

and Prime Minister of

transmission as well, for

Japan.

which PGN functioned

with a stock
split, the Companys
Articles of Association
underwent their most
recent amendment
by Deed No. 50 dated
13 June 2008 jo. Deed

2011

No. 8 dated 2 Jully

In 2011 PGN established two subsidiaries that each

2008.

engaged in the upstream and downstream natural gas

as a transporter.

business. The subsidiary in the upstream is PT Saka

PGN has more than a century and a halfs experience in

Energy Indonesia (SAKA) while the subsidiary in the

the gas industry and are expert in the safe handling and

downstream is PT Gagas Energi Indonesia (GAGAS).

distribution of gas.

PGNs Ownership in both subsidiary is 99% with 1%


ownership by PT PGAS Solution.

PGN started life in 1859 as a privately owned Dutch


company called Firma L.I. Enthoven, later coming under
Government control and eventually emerging as a state
company, named Perusahaan Negara Gas, in 1965. Further
transformation saw its status change to a limited liability
company owned by the state, and then to a public company

1965

2009

2012

On 13 May 1965, pursuant to

To optimize the Companys

PGN established subsidiar-

accumulated strengths and

ies PT PGN LNG Indonesia

competencies by taking

(PGN LNG). The scope of

advantage of oppurtunities

PGN LNG business includes

to develop the business

procuring LNG supply, LNG

and realize PGNs vision,

and natural gas transporta-

the Company established

tion activity, inventory activi-

another subsidiary,

ties includes regasification to

PT PGAS Solution.

the buyer, as well as perform-

Government Regulation No.


19/1965 the Company was
designated a state company
known as Perusahaan Gas
Negara (PGN). The subsequent issuance of Government
Regulation No. 2 year 1984
changed the Companys legal
status from State Company
(PN) to Public Corporation
(Perum).

1996

2003

2007

Becomes a limited liability

The Companys shares

On 11 March 2007, the Com-

company with exclusive

were listed on the Jakarta

pany succesfully conducted a

license to develop and

Stock Exchange and the

Gas-In (first gas chanelling),

distribute gas in Indonesia.

Surabaya Stock Exchange

which was followed by the

on 15 December 2003,

commercialization of gas from

with the stock code

Pertaminas Pagardewa gas

PGAS.

field through the South Sumatera-West Java pipeline to the


Companys cusomer in Cilegon
(PT Krakatau Daya Listrik).

ing other business activities.

with its shares listed on the Indonesia Stock Exchanges.


Today PGN is part state-owned, financially strong and
professionally managed, with good corporate governance.
Focusing on transportation and distribution of natural gas,
PGN connects Indonesias natural gas sources with users,
bringing previously underutilized energy to major markets, as
well as having the expertise, the ability and the motivation to
look beyond transportation and distribution to integrate up
or down the supply chain, securing new sources of energy
to meet customers long-term needs.

Company In Brief

Addressing critical needs by looking beyond the traditional


to find solutions that revolutionize natural gas transportation,
delivery and utilization.
Rising demand,
demands innovative solutions
With a stable economic growth rate, and a steadily

PGN is committed to securing guaranteed supplies

rising population, Indonesia needs more energy for

of natural gas to meet its customers needs, and is

domestic use. Natural gas - abundant, affordable and

pursuing a growth strategy that goes beyond pipelines

clean burning provides the perfect antidote, however

complementing its traditional strengths with innovative

securing sufficient supply remains a challenge in a

solutions.

country as geographically diverse as Indonesia.


Indonesias gas sources are mostly located on islands

Moving beyond pipelines

such as Sumatera, Kalimantan, Sulawesi and Irian,


while the main demand is in Java. To optimise growth

The strategy is to extend PGNs reach beyond its

within Indonesia, the Government wants to balance

transmission pipelines by:

development among all the main islands, and PGNs


goals are aligned with that policy. PGN has extended

establishing floating LNG storage and re-gasification

its core activities from gas distribution, serving nearby

terminals that can receive and process LNG from

customers from local sources, to trans-island and inter-

distant sources, whether domestic or international

island transportation, moving natural gas through its


purpose built infrastructure of gas pipelines bringing

exploring the potential for joint ventures in coal bed

large volumes of natural gas to be distributed to major

methane or shale gas from deposits close to PGNs

markets in the Archipelago and in the region.

transmission lines

In tandem with this, PGN has continued to expand gas

developing new non-pipeline transport mechanisms

utilization in the vicinity of marginal fields, especially in

such as inland CNG and LNG to reach markets or

regions outside Java.

industrial zones not served by natural gas pipelines

Even so, demand continues to outstrip supply. Electricity

It is simply a matter of PGN applying its vast experience

generation companies are converting an increasing

and industry leading expertise to find new answers to

number of power plants to natural gas in a move

long-established needs.

away from expensive oil based fuels, and the growing


realization of the benefits of using natural gas, both
economic and environmental, is driving demand ever
higher.

The vital link for PGN is always that between the point of
supply and the customer. The challenge always is to optimize
both supply and delivery.

Subsidiaries and Affiliated Companies


PT Saka Energi Indonesia
- upstream business

Our Business
PT Gagas Energi Indonesia
- downstream business

PGN LNG Indonesia


- LNG business

PT PGAS Solution
- construction

Natural gas distribution

Strategic Business Units

PGN operates a natural gas distribution pipeline network

To oversee the transmission and distribution operations,

stretching more than 3,750 km, supplying natural gas to

PGN has divided its business area into four geographically

power plants, industry, commercial businesses, including

focused Strategic Business Units:

PT PGAS Telekomunikasi Nusantara


- telecommunication

restaurants, hotels and hospitals, and households, in


some the countrys most densely populated areas. PGN

SBU Distribution Region I, covering the area from

derives a profit from the sale of the gas to its customers.

Western Java to South Sumatra

(including Jakarta Bogor)

PT Transportasi Gas Indonesia


- natural gas transmission

SBU Distribution Region II, covering East Java

Natural gas transmission

SBU Distribution Region III, covering North Sumatra,


Pekanbaru and the Batam Islands

The natural gas transmission pipeline operated by PGN

SBU Transmission Sumatra-Java, covering the

comprises a high-pressure pipeline network, some

transmission network in South Sumatra and Java

2,160 km in length, which transports natural gas from the


producers gas fields to the buyers receiving stations.

In addition, PT Transportasi Gas Indonesia, a subsidiary

PT Nusantara Regas

PGN receives a Toll Fee for the transportation of the gas

of PGN, manages the natural gas transmission business

- floating storage and regasification terminal

as specified in Gas Transportation Agreements (GTA)

between Grissik-Duri and Grissik-Singapore.

operable over 10-20 years.

Our Operations
I

SINGAPURA

Crossing land and sea, spanning a nation,


connecting supply with demand.

Batam - SBU III


Medan - SBU III

KALIMANTAN

Pekanbaru - SBU III

SUMATERA

PGNs transmission pipeline network links the major natural gas producing
areas with the major industrial zones and residential areas that rely on natural
gas as a key source of energy.

Palembang - SBU I

Bekasi/ Karawang - SBU I

Banten - SBU I

The GrissikDuri transmission pipeline carries gas from the ConocoPhillips field,
to Duri (Chevron Pacific Indonesia). It is operated by Transgasindo, a subsidiary

Jakarta/ Bogor - SBU I

JAWA

of PGN.
Cirebon - SBU I

The GrissikBatam-Singapore transmission pipeline crosses the sea, carrying


gas from the ConocoPhillips & PetroChina field to Batam (PGN Batam) and

Surabaya, Sidoarjo, Mojokerto


Pasuruan, Probolinggo - SBU II

Singapore (Gas Supply Pte.Ltd.). It is operated by Transgasindo, a subsidiary of


PGN. The South SumateraWest Java transmission pipeline serves the needs
of West Java and Jakarta.

PIPELINE
West Java FSRU

South Sumatera - West Java


Transmission Pipeline
[SSWJ]

Grissik - Duri
Transmission Pipeline

Grissik - Singapore
Transmission Pipeline

Lampung FSRU

PGN has so far distributed gas volumes in excess of


more than 800 MMScfd, and transmitted volumes up to
840 MMScfd, through its 6000 km long transmission and
distribution pipeline network.

Our Customers

Generating power, more cleanly, more cheaply.


Power Sector

Continuing growth, both of the economy and of the nations population, has
fuelled an ever-rising demand for electricity in Indonesia to power domestic
industry and to meet the everyday needs of consumers.
Power generation companies know that they can no longer rely solely on
expensive oil-based fuels such as diesel to supply electricity and are turning
increasingly to natural gas, which has a distinct price advantage, especially
now that Government subsidies for diesel have been removed.
PGN supplies natural gas to fuel the Gas Fired Power Plants of PLN and
other independent power projects, generating essential energy while saving
many trillions of Rupiah and releasing fewer emissions into the atmosphere.

Power Sector Customers

PLN

Independent Power Producers

Our Customers

Keeping the wheels of industry turning.


Industry

PGN provides natural gas to large and medium industries and utilities in
Indonesia. They use it for heating and drying, and to fuel steam boilers,
furnace dryers, ovens and a multitude of other industrial applications. Some
industries now are even using natural gas to generate their own electricity as
an alternative to buying it from the state electricity company PLN.
PGN provides its customers with a professional, reliable service, unequalled
in the industry, advising on all aspects of gas planning and utilization.
The best natural gas solutions come naturally to PGN.
Delivering more than 820 MMScf of natural gas per day to industrial,
commercial and residential customers.

Industry Gas Customer


business segments:

Food

Textiles

Wood

Paper

Chemical

Ceramics

Glass

Cement

Basic metal

Fabricated metal

Others

Our Customers

The power to serve people better.


Commercial

Commercial customers relying on natural gas from PGN include restaurants,


hotels, hospitals, as well as small to medium sized enterprises involved in
industrial processing.
PGN supplies more than just gas, backing it with full technical support for
customers who can rely on PGNs unrivalled experience and expertise in the
safe and efficient utilization of natural gas.

Commercial Customers

Hotels

Shopping Malls

Hospitals

Office Buildings

Commercial Buildings

High Rise Blocks

Restaurants

Our Customers

The blue flame that enhances everyday life.


Residential

The residential business has not yet proved attractive to private investors
because of the regulated tariffs. This then is an important task for PGN,
serving the people of Indonesia by providing the natural gas that heats their
water, cooks their food, and powers their domestic appliances... contributing
to their better living.
Residential Customers
Alone among gas suppliers, PGN looks after the interests of residential users
in Indonesia, building and maintaining distribution pipeline networks to reach

Landed Housing

more centers of population across the country and ever-greater numbers of

Apartments

home dwellers.
Natural gas is for life.

Business
Expansion

Fulfilling future demand.


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 in 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.

Complementing the environmental benefits of natural gas with


action that preserves and protects people and the planet.

Safety &
Environment

PGN Environmental
Programs

Protecting our people


Natural gas is highly flammable, which puts occupational health and safety

Environmental monitoring

right at the top of PGNs priorities when it comes to planning and day-to-day

Land rehabilitation

operations.

Re-greening

Public tree planting

The companys goal is to maintain zero accidents through the implementation

Reducing energy use

of strict safety standards in all aspects of the business, and the establishment

Freon replacement

of safety as an ingrained part of PGN culture.


protecting our planet
Just as important is the protection and preservation of the natural
environment.
Natural gas already makes a contribution, as it is cleaner and greener and
more environmentally friendly than oil based fuels and coal, burning more
cleanly and releasing fewer potentially harmful emissions into the atmosphere.
PGN complements this natural advantage with an Environmental Program
that provides seeds and plant material for re-greening activities and for the
replanting of dry land, peat land and mangroves that have been affected by
commercial activity.
The Program also supports the city forest and city park programs, which aim
to promote nature conservation and help combat global climate change.

Community

Recognizing the role we play in the life of the


communities around us, and working to make a
difference.
Caring for our communities
PGN works closely with the local communities with which we are involved, aiming
wherever possible to assist community empowerment and contribute to a better
quality of life.
Our corporate social responsibility programs promote health, education, and
sustainable environmental management, and support local income generation
initiatives through training and micro-finance schemes. We also support religious
activities, help improve public facilities, and contribute to disaster relief.

Education & Training

Religious Activities

Providing scholarships and assistance to procure school

Supporting the celebration of religious events, across all

infrastructure and facilities, providing assistance to

major faiths, as well as improving community religious

support training and coaching activities.

facilities.

Public Facilities

Disaster Relief

Assistance to develop or rehabilitate facilities and

Providing assistance to the victims of natural

infrastructure including roads, bridges, irrigation canals,

disasters, including the provision of clean water and

parks, village halls, sports facilities.

sanitation facilities, medicines and medical personnel,

Community Health

procurement of tents and shelter, and provision of funds

Improving community health facilities, providing free

to hire transport for displaced persons.

treatment for communities and assistance in procuring


medicines, and supporting other public health-related

Partnership Program

activities.

Supports economic activities by providing assistance in


the form of training, financial and marketing support for
small and medium enterprises.

Upstream Assets

Our People

Valuing the irreplaceable asset on which all


success is based.
Our competitive advantage
The PGN story is one of making the most of natural resources, and no resource
plays a more crucial role in PGNs success than its human resource our
people.
Already the people of PGN have more experience and expertise in the
transportation and distribution of natural gas than any others in the industry,
and this vast reservoir of skill is being complemented by new expertise and
specialist skills as the company looks beyond pipeline towards optimizing
natural gas utilization and being a true energy solution provider for customers
over the long term.

PGN will continue to seek and retain the best people, to equip them with the
skills and knowledge that will keep them ahead of the competition, and to
provide the opportunities that will inspire and enable them to achieve their full
potential.
PGN providing energy for today and tomorrow
natural energy for life.

Subsidiaries

PT SAKA Energi Indonesia

PT PGAS Telekomunikasi Nusantara

The Energy

Wisma 77 19th Floor

12th Floor SCBD Lot 11A

Jl. Letjen. S. Parman Kav. 77

Jl. Jend. Sudirman Kav. 52-53

Jakarta 11410 Indonesia

Jakarta 12190 Indonesia

PT Perusahaan Gas Negara (Persero) Tbk


Jl. K.H. Zainul Arifin No. 20

T +6221 5366 0444/ 0445

F +6221-29951001

F +6221 5367 0080

E information.contact@sakaenergi.co.id
www.sakaenergi.com

Jakarta 11140 Indonesia


T +6221 633 4838
F +6221 633 3080
E contact.center@pgn.co.id
www.pgn.co.id

PT GAGAS Energi Indonesia

PT Nusantara Regas

Equity Tower Building 16th Floor

Wisma Nusantara 19th Floor

SCBD Lot 9 Suites S-G-H

Jl. M.H. Thamrin No. 59

Jl. Jendral Sudirman Kav. 52-53

Jakarta 10350 Indonesia

Jakarta 12190 Indonesia

Contact Center

T +6221 315 9543 / 9544

500 645
T +6221 633 3000
E contact.center@pgn.co.id

Strategic Business Unit

Strategic Business Unit

Region I Western Java Office

Region III Northern Sumatera Office

Wisma Nusantara 3rd Floor

Jl. Imam Bonjol No. 15

Jl. M.H. Thamrin No.59

Medan 20112 Indonesia

Jakarta 10350 Indonesia


T +6261 453 8655
T +6221 3902 755, 3916 818

T +6221-29951000

F +6261 415 2396

F +6221 3162 430

T +6221 2903 5835

F +6221 315 9525

F +6221 2903 5838

E public.relations@tgi.co.id

E contact.information@gagas.co.id

www.tgi.co.id

PT PGN LNG INDONESIA

PT Transportasi Gas Indonesia

Equity Tower Building 16th Floor

Jl. Kebon Sirih Raya No. 1

SCBD Lot 9 Suites A-B-E

Jakarta 10340 Indonesia

Jl. Jendral Sudirman Kav. 52-53


Jakarta 12190 Indonesia

F +6221 310 3757, 3545


T +6221 2903 7505, 2903 7606
F +6221 2903 7444
E contact.center@pgnlng.com
www.pgnlng.com

Strategic Business Unit

Strategic Business Unit

Region II Eastern Java Office

Sumatera-Java Transmission Office

Jl. Pemuda No. 56-58

Graha PGAS 10th11th Floor

Surabaya 60271 Indonesia

Jl. K.H.Zainul Arifin No. 20


Jakarta 11140 Indonesia

T +6231 549 0555 (hunting)


F +6231 549 0333

T +6221 638 66667/ 66669


F +6221 638 66770/ 66760

T +6221 315 8929, 8939

PT PGAS Solution
C Building, 4th Floor
Jl. K.H. Zainul Arifin No. 20
Jakarta 11140 Indonesia
T +6221 6385 4557/ 4572/ 4506
F +6221 6385 4534

www.nusantararegas.com

www.pgn.co.id