BUSINESS IMPROVEMENT FOR PT PERTAGAS NIAGA IN UTILIZING CNG MRU TO EXPAND RETAIL MARKET IN BALI AREA

• Main Author: Putera, Rafi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71129
• Institution: Institut Teknologi Bandung

Natural gas is compressed to less than 1% of the volume it occupies at standard atmospheric pressure to create compressed natural gas (CNG). CNG is stored and distributed in rigid containers at pressures between 180 and 250 bars, and is transported by truck, to facilitate supply, particularly to customers who are located at a distance from the gas field. CNG is still viewed as a transitional fuel until customers have access to pipeline gas. In the past few years, few Pertagas Niaga CNG customers have switched to Pipeline Gas when it became available. Additionally, the lower price of Pipeline Gas makes CNG less competitive than Pipeline Gas. These conditions have led to a significant decrease in the volume of CNG sales, underutilization of CNG facilities, and the inability to meet the minimum volume requirements of a transportation contract. If the costs of selling CNG were to be added to the current volume of contracted sales, the company's goal and minimum margin could not be met. The company's CNG sales goal could be met by increasing the volume of sales in the brand-new region, where there is less risk of competition. Increasing industrial sector sales volume is quite a challenge under these circumstances, as they become more price sensitive. For industries with substantial fuel consumption, Pipeline Gas would be the most economically viable option. Therefore, CNG sales must target new customer segments that consume gas in smaller volumes that cannot be supplied economically with Pipeline Gas and in areas where there are no competitors. Using Vrio and Value Chain Analysis for internal analysis, followed by PESTLE and Porter Five for external analysis, a TOWS matrix was created to determine CNG sales for Pertagas Niaga to target the retail segment with the existing energy consisting of solar and LPG due to the ease of supply with the same spec requirements for the facilities. Developing a new CNG business process with the assistance of the Business Model Canvas and Strategy Diamond in order to increase CNG product sales in the new commercial area.