PT Perusahaan Gas Negara Tbk : PGAS Operational Highlight June 2020

PGAS:IJ

PT Perusahaan Gas Negara Tbk

Refocusing Core Business

July 21, 2020

PT Perusahaan Gas Negara Tbk. (IDX: PGAS) today announces key operating performance updates ended June 30, 2020, as follows:

	YTD Performance
	-9%	-7%		-5%	-6%		-34%
						Upstream Lifting (BOEPD)
Distribution (BBTUD)	892	811	870-880	Transmission (MMSCFD)	1.353	1.290	1.369-1,377	29.270,0	19.449,0	28,767-30,137
	Jun-	Jun-	FY20		Jun- Jun- FY20		Jun- Jun- FY20
	19	20	Target		19	20	Target		19	20	Target

-32%	-19%		-20%
Regasification (BBTUD)	119	96	120-126	LPG Processing (TPD)
	Jun- Jun- FY20
	19	20	Target

-44%
		-37%	Oil Transportation (BOPD)
202.00	113.00	178-184
Jun- Jun- FY20
19	20	Target

-2%
		+6%
10,392.00	10,187.00	9,589-10,000
Jun- Jun- FY20
19	20	Target

MoM Performance

Volumes	May	Jun	MoM
2020	2020
	(%)

Distribution	664	758	14.1
(BBTUD)

Remarks

1. Distribution volume breakdown on a MoM basis

• PGN = 575 BBTUD (May) vs. 680 BBTUD (June);
• Gagas = 4 BBTUD (May) vs. 4 BBTUD (June) ;
• Pertagas = 89 BBTUD (May) vs. 77 BBTUD (June)

1. Higher consolidated distribution volumes on a MoM basis was primarily due to reopening of the economy after limited movement of people was relaxed by local governments starting in June as well as the end of Eid al-Fitr holidays.

Transmission				Breakdown of transmission volume on a MoM basis is as follow:
1,184	1,233	4.1	• PGN = 1 MMSCFD (May) vs. 2 MMSCFD (June);
(MMSCFD)
			• Pertagas = 1,183 MMSCFD (May.) vs. 1,231 MMSCFD (June)
				Breakdown of lifting volumes per block are as follow:
				• Pangkah = 1,954 BOEPD (May) vs. 5,133 BOEPD (June);
Upstream Lifting	15,433	19,462	26.10	• Fasken = 5,229 BOEPD (May) vs. 5,079 BOEPD (June);
(BOEPD)	• Ketapang = 764 BOEPD (May) vs. 986 BOEPD (June);
				• Bangkanai = 985 BOEPD (May) vs. 973 BOEPD (June);
				• Muara Bakau = 6,501 BOEPD (May) vs. 7,291 BOEPD (June)
Regasification	82	83	2.0	Higher regasification volume MoM was primarily due to
(BBTUD)	stronger consumption from PLN.
				The volume breakdown per LPG plant on a MoM basis is as
LPG Processing	8	163	1,830.1	follow:
(TPD)	• LPG Pondok Tengah = 0 TPD (May) vs. 0 TPD (June)
				• LPG MKS = 8 TPD (May) vs. 163 TPD (June)
Oil Transportation				Oil delivery declined MoM basis primarily contributed by lower
10,294	10,131	-1.6	oil transportation volume from Pertamina EP field in Central
(BOPD)
			Ramba, South Sumatra to Plaju refinery unit in South Sumatra.

CAPEX (US$ Million)

350-500

30%

70% 68%63 32%

FY20 YTD May Target 2020

Upstream

Downstream,

Midstream &

Supporting

YTD-May 2020** Capex reached US$63 million with the following details:

BUSINESS	CAPEX		NOTES
SEGMENTS	(US$ Mio)
Upstream	43	Development of existing oil & gas blocks
	(including West Pangkah & Sidayu fields)
	18	-	Gresik-to-Semarang Transmission Pipeline
Downstream			Development
		-	Distribution pipeline development
Midstream	-	-
Supporting	2	Fiber optic development

• YTD-June2020 Capex to be determined
  Business Updates

1. Effective Letter of Agreements (LoA) in which PGN is already getting special gas price from upstream producers, presently amounts to 169 BBTUD with the costs of gas range between US$4.00 and US$4.50/MMBTU. These supplies are mostly procured from Pertamina Group.
2. Starting with June 2020 gas invoice, there are more than 127 industrial customers (excluding PLN) with consolidated distribution volume 100 BBTUD situated in West Java and North Sumatra markets are affected by the US$6.00/MMBTU gas price policy. Those affected industrial customers mentioned above will temporarily pay theirs gas bills based on a two price components: 45-50% of total amount due using US$6.00/MMBTU, while the remaining 50-55% of the total amount due apply the normal gas price. These gas bills will change accordingly when the rest of the LoAs are signed and effective.

Moreover, it is important to note that the US$6.00/MMBTU gas price policy actually have retroactive effective date of April 13, 2020. For the industrial customers (including PLN) currently not affected by the US$6.00/MMBTU gas price policy, they are still being charged the normal gas price (consolidated distribution ASP in 1Q20 was approximately US$8.7/MMBTU).

3. PGN through its downstream subsidiary, PT Pertagas, in the 2H20 is going to commence constructions of the 367 km length-oil pipeline from the Rokan oil and gas block in South Sumatra to Pertamina's oil refinery in Dumai. Importantly, this project would bring additional estimated revenue of US$104 million annually. The estimated capex of this project is going to be US$300 million, and we target that this pipeline will be commercial in 4Q21 where it will deliver oil an average of 204,000 barrels of oil per day. Moreover, the economic life of the project is about 20 years with payback period of close to 7 years.

BusinessFor furtherUpdatesinformation please contact:

(cont'd)

Investor Relations

PT Perusahaan Gas Negara Tbk

Mid Tower Manhattan 26th Floor

Jl. TB Simatupang Kav. 1-S, Jakarta, Indonesia Email: [e-mail]

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