20240918_PGAS_Laporan Informasi dan Fakta Material_31726857_lamp2.pdf

                         17 September 2024
                        Fajriyah Usman (T : +62 85883308686, E : fajriyah.usman@pertamina.com)




segments contributed 25% of the EBITDA, while 25% was contributed by the upstream
business.

The gas trading and transmission business line contributed 73% to the company's revenue.
11% was contributed by the upstream business, and 16% came from other business lines.
Putting caution first when carrying out investment plans amidst the dynamics of the national
and global economy, the Company's capital expenditure reached US$ 70 million in the first
semester of 2024, 44% absorbed by the downstream segment and 56% by the upstream
segment.

PGN’s primary scheme for optimizing the use of natural gas include pipeline infrastructure
along with beyond pipeline natural gas infrastructure present and in the future. From an
operational standpoint, the performance of the natural gas trading segment is generally
influenced by the imbalance between supply and demand. There was a decrease in the
volume of pipeline gas supply due to natural decline (the natural decline of well) from suppliers
in the Sumatra and Java regions, as well as the Eid holiday in the second quarter of 2024. It
was necessary to embark on increasing LNG supplies in order to anticipate supply challenges.

"The company continues to implement a measured strategy in line with the government's
objective to further optimize natural gas utilization as a transition energy source. We are
undertaking several initiatives, including building and expanding integrated natural gas
infrastructure to promote the growth of user segments," according to Arief.

Arief added that approaches will sustainably and long-term enhance the reliability of the
Company's core business. In the meantime, PGN keeps putting on innovation and solutions
to ensure that customers’ demands are satisfied. Providing LNG is one solution, especially
the natural decline in gas supply from several existing wells.

The development of key infrastructure for the years 2025-2027 has been prepared in order to
secure the expansion of operations. In the midst of a challenging situation, seizing the
opportunity for economic recovery, accelerating the energy transition, and creating new
business segments/derivative products that facilitate the reduction of carbon emissions (low
carbon business).

The gain of LNG usage reflected in the success of LNG gas regasification through the
Terminal Use Agreement (TUA) of the FSRU Lampung. In keeping with customer demands
and FSRU Lampung optimization, the gas distribution volume reached 65 BBTUD, 76%
compared to the period of January-June 2023.

                        17 September 2024
                        Fajriyah Usman (T : +62 85883308686, E : fajriyah.usman@pertamina.com)




"PGN is committed to advance core business, firmly established in the development of gas
transmission and distribution projects. Nevertheless, PGN is adaptive with several new
initiatives, such as enhancing the LNG business by emphasizing cost-effectiveness in the
logistics of gas distribution," Arief added.

PGN is ready to collaborate with the government to finish the Cirebon-Semarang Phase II
natural gas infrastructure project. This pipeline will transport natural gas from East Java to
West Java. PGN will construct the Tegal – Cilacap Distribution Pipeline for the gasification of
the Cilacap Refinery Unit IV as part of a new business venture in tandem with the development
of the Cisem II Pipeline. In cooperation with PT Kilang Pertamina Internasional (KPI). PGN
will embark on this in 2025 with a commissioning volume of approximately 51 MMSCFD.

PGN is involved in the strategic project of the WNTS - Pemping gas pipeline to transport
natural gas from the Natuna Field to the domestic market. Furthemore, the government's plan
to establish Dumai – Sei Mangkei pipeline (the state budget) is potential for gas pipeline
integration in Sumatra and possibly for PGN to access gas supply from the Andaman Block.
The Arun LNG facility is also planned to be deployed to utilize the gas supply from the
Andaman Block. It is also intended to install the Arun LNG facility in order to use the Andaman
Block's gas supplies.

The Onshore Receiving Facility (ORF) operated by the Subholding Gas Subsidiary, PT
Pertamina Gas. (Pertagas), has boosted the usage of natural gas through the integration of
infrastructure in Central Java. Transport and distribute natural gas from the Jambaran Tiung
Biru (JTB) gas field through the Gresik-Semarang pipeline. The supplies from JTB are
managed at the Tambak Rejo ORF, integrated with the completion of the Central Java
distribution system and delivers gas to the IP Tambak Lorok power plant, industries,
commercials, and households in Semarang-Demak.

That infrastructure enhances the services of the Cirebon-Semarang pipeline phase I (Cisem
I), which supplies the natural gas to Kendal Special Economic Zone (KEK), Tambak Aji
Industrial Area, Wijaya Kusuma Industrial Area, Tambak Lorok IP, as well as households,
commercials and industrial sectors in Semarang - Demak. The integration of infrastructure
boosted the absorption of gas in Central Java from 48 BBTUD to 60-70 BBTUD.

The addition and integration of this infrastructure are expected to fulfill natural gas demands
of both industrial and household customers. In Central Java, the optimization of natural gas
infrastructure can at least supply the natural gas for power generation, as well as for 31
industrial and commercial entities, and 29 small customers. There has been an increase in
gas absorption from 0.5 BBTUD to 3.5 BBTUD.

                         17 September 2024
                        Fajriyah Usman (T : +62 85883308686, E : fajriyah.usman@pertamina.com)




"Initiatives have been undertaken by PGN, of course based on the mission and commitment
to consistently provide gas-based energy that adds value for all customers," he emphasized.

Moreover, the revitalization project for the Arun LNG tank continues to progress towards the
goal, making Arun LNG Terminal a LNG hub leader in Asia. The revitalization of tank F-6004
is one of the first phases. As of the second quarter of 2024, the construction of the non-tank
package has reached 27.227%, while the tank package stands at 8.16%.

PGN's profitability will be sustained throughout the extension of transmission and distribution
in the long term. This is undoubtedly consistent with the increasing number of customers as
the national economy grows.

As of the first semester of 2024, PGN’s pipeline network spans 13,319 km, an increase of 626
km. The total number of PGN customers are 821,245, made up of 3,165 industrial and
commercial customers, 2,017 small customers, and 816,063 households.

PGN will also construct pipeline infrastructure for the transportation of other energy sources,
a Fuel Oil (BBM) pipeline. Through subsidiaries, PT Pertamina Gas (Pertagas) and PT
Pertamina Patra Niaga (PPN) are working together to build the Cikampek – Plumpang BBM
pipeline using a Build Maintenance-Transfer (BMT) scheme with a 10-year operational period.

"The pipeline’s development is one of the Subholding Gas’s business portfolio in the
infrastructure sector, particularly in pipeline-based energy transportation. Currently, we are in
progress of drafting the Fuel Pipeline Service Agreement for Cikampek – Plumpang between
Pertagas and PPN. This infrastructure would be 96 km and have an annual volume capacity
of 4.6 billion liters," Arief concluded.