LNG Receiving Terminals
PGN's planned construction of an LNG terminal in West Java is rapidly approaching the implementation phase. On 14 April 2010, a deed of establishment was signed for PT Nusantara Regas, a joint venture between PGN and PT Pertamina (Persero), with a 40% to 60% share ownership structure. Nusantara Regas will develop and manage the Floating Storage and Regasification Terminal (FSRT) Facility in West Java, including the purchase of Liquefied Natural Gas ("LNG") and the marketing of the output of the FSRT Facility as well as other related business activities.
Coal Bed Methane (CBM)
PGN is actively developing CBM in Indonesia primarily as means of safeguarding gas supplies in future. The Company has entered into cooperations with experienced CBM operators as well as local governments. On 1 November 2010, PGN signed an MOU with PT Medco Energi CBM Indonesia to cooperate on the development of CBM in the Southern Sumatera region.
The planned development of the power plant business is part of the planned downstream development to derive added value from the Company's natural gas commodities. In developing this business, PGN will focus on small to medium scale gas-fuelled electricity generation. The development of this business is in line with PGN's target of expanding the use of natural gas and deriving profits from the sale of the electricity produced by these new business units.
City Gas Distribution
PGN plans to develop city gas distribution in a number of regions that have seen significant growth in energy demand, and specifically for natural gas, that has not yet been met. The targeted customer segments include the small and medium enterprise, commercial, transportation and residential sectors. City gas distribution will be developed in phases, taking into account gas supplies, the size of existing markets in the regions concerned and ease of implementation.
Non Pipeline Transportation Modes (Inland LNG and CNG)
PGN continues to promote the increased domestic use of natural gas by developing both pipeline-based and non-pipeline modes of transportation for gas, which include CNG and mini LNG. These non-pipeline modes will be used to reach energy users, particularly in the industry and power sectors, that are not yet reached by gas pipelines due to technical or economic constraints.