PT Pertamina Gas is a company active in the midstream and downstream sectors of the Indonesian gas industry. It is a subsidiary of PT Pertamina (Persero) involved in gas trading, transportation and processing and other businesses related to natural gas and its byproducts. PT Pertamina Gas was established on 23 February 2007. Its establishment was to fulfill the requirements of Law No. 22/2001 and the increase in demand for gas in Indonesia as an environmentally friendly alternative to fuel oil. It also added value to the gas business. Pertamina’s competence obtained from 30 years of managing the gas business provided the momentum for the establishment of a separate focused and professional company. Its resources and assets, together with its business network, are the pillars on which PT Pertamina Gas is building the business in line with the values of Good Corporate Governance. PT Pertamina Gas has received strong support from its parent company, PT Pertamina (Persero) and other affiliates. This mutual support between subsidiaries of PT Pertamina (Persero) has resulted in strong synergies within the oil & gas business. In terms of trading, PT Pertamina Gas has reserves totaling 10.4 TCF as well as its interests in managing gas transmission infrastructure in West Java, East Java, South Sumatra, Aceh and East Kalimantan. Among its other strengths, PT Pertamina Gas has captive markets totaling 2,335 MMSFCD (committed volume : 1,405 MMSCFD) in Northern Sumatra (SBU), Southern Sumatra (SBS) and Western Java (JBB). PT Pertamina Gas will also continue to nurture a conducive business environment and situation under the coordination of BPMIGAS (Upstream Oil and Gas Supervisory Agency) and BPH Migas as regulators, and the various state-owned enterprises that are the largest consumers of gas. There are many business opportunities for PT Pertamina Gas in the future given the current limited supplies of gas. Uncommitted demand for gas at the beginning of 2007 had already reached 250 BSCF per year compared to an increase in national gas requirements of 45 percent last year. Accordingly, the Indonesian government has produced a blueprint for the national gas pipeline network known as the Integrated Indonesia Gas Pipeline, of which one section, Semarang-Gresik, will be built by PT Pertamina Gas. Business prospects over the next few years for gas byproducts, petrochemicals and electricity are also very promising.