September 25, 2023

Detailed Study Begins for Biomethane Supply Project in Indonesia

PT Perusahaan Gas Negara Tbk

JGC Holdings Corporation
Osaka Gas Co., Ltd.

INPEX CORPORATIONPT Perusahaan Gas Negara Tbk (hereinafter PGN, a natural gas supplier and subsidiary of Indonesiannational oil company PT PERTAMINA, hereinafter Pertamina), JGC Holdings Corporation (hereinafter JGC),

Osaka Gas Co. Ltd. (hereinafter Osaka Gas), and INPEX CORPORATION (hereinafter INPEX) have started

detailed discussions on commercialization of biomethane1 derived from palm oil mill effluent (POME) inIndonesia.

Pertamina, JGC, Osaka Gas and INPEX have been jointly studying use of POME-based biomethane forsome time. Recently, a decision was made regarding use of PGN natural gas pipelines, which, along withthe memorandum of understanding for feedstock procurement concluded with palm plantations and theexpressions of interest received from customers, has led the participants to begin in-depth discussions.

This phase will involve technical assessment of supply chain development, and biomethane production andsupply, assuming that biomethane production would begin in southern Sumatra in 2025.

Although Indonesia is the world's largest producer and exporter of palm oil – a key domestic industry

generating 4.5 percent of the GDP and employing nearly three million people – POME is rich in organic

material that is associated with significant emissions of methane, a gas estimated to have a greenhouseeffect 25 times greater than that of CO2.

The proposed project would recover methane gas currently released into the atmosphere from POME,
refine it into biomethane, and supply it to customers in Indonesia via natural gas pipelines and otherexisting infrastructure. In addition to reducing methane gas emissions, other potential benefits include

meeting the country's rising natural gas demand and reducing consumer CO2 emissions by shifting fromfossil fuels to biomethane. In the future, the scale of these operations are expected to expand acrossSumatra and to Kalimantan as project participants also will consider supplying bio-LNG liquefied frombiomethane as a bunker fuel, exporting bio-LNG to Japan and elsewhere, and other potential business.
This project was also introduced at the Asia Zero Emission Community (AZEC) Ministerial Meeting in March2023 as an initiative contributing to carbon neutrality in Asia.

PGN as Gas Subholding under Pertamina, plays a role during Indonesia’s energy transition phase toward
Net Zero Emission (NZE) by 2060. This project is expected to contribute to solving environmental

challenges along with the development of New and Renewable Energy (NRE) by using POME as anenvironmentally friendly energy source. In this project, PGN will provide pipeline injection facilities andnatural gas pipelines that have good access to POME as a raw material. The biomethane produced fromthe project is expected not only to meet industrial and consumer demand in Indonesia, but also to furtherexpand Pertamina's natural gas network.

JGC has accelerated its energy transition initiatives, working toward carbon reduction anddecarbonization in line with the May 2021 long-term management vision and the medium-term businessplan (2040 Vision and BSP 2025). To date, the Group has built an extensive track record in Indonesia inplant construction for LNG and other purposes. JGC will contribute this experience along with project
management capabilities honed through many past projects to guide this collaboration.

Osaka Gas also stands united in developing technologies and services that support decarbonization and inworking to address climate change and other social issues, having announced their Carbon Neutral Vision(CNV) in January 2021 and Energy Transition 2030 in March 2023. Working with local natural gas supplier
PGN and others in this project, the Group will apply biogas refining technologies supporting biomethane

production, experience in biomethane pipeline injection, and expertise from natural gas sales activities topromote biomethane in Indonesia and reduce CO2 emissions in both Indonesia and Japan.

INPEX, in line with its Long-term Strategy and Medium-term Business Plan (INPEX Vision@2022)

announced in February 2022, proactively engages in energy structure reforms towards the realization ofa net-zero carbon society by 2050 while responding to energy demand in Japan and other countries

around the world. With the other participants, INPEX will promote efforts to establish business
responsive to climate change and provide clean energy supply in Indonesia.
1:

Biomethane: A biofuel made from a biogas (consisting mainly of methane and CO2) produced by anaerobic POME
fermentation. Methane purity is enhanced at a refinery by removing CO2. With characteristics closely matching those offossil-based natural gas, biomethane has been viewed by many as a viable alternative.

2:

Press release dated April 25, 2022 :https://www.jgc.com/jp/news/2022/20220425_01.html

Image of the ProjectImage of business area in Indonesia

Overview of participating companies■ PT Perusahaan Gas Negara Tbk (PGN)
Head office

Jl. KH. Zainul Arifin No. 20 Jakarta 11140, Indonesia

EstablishmentMay 13, 1965

Representative

Rachmat Hutama – Corporate Secretary■ JGC Holdings Corporation
Head office2-3-1 Minato Mirai, Nishi-ku, Yokohama, Kanagawa

Establishment

October 25, 1928

Representative

Masayuki Sato
Representative Director, Chairman and CEO■ Osaka Gas Co., Ltd.
Head office

4-1-2 Hiranomachi, Chuo-ku, Osaka

Establishment

April 10, 1897

Representative

Masataka Fujiwara
Representative Director and President■ INPEX CORPORATIONHead office

5-3-1 Akasaka, Minato-ku, Tokyo

Establishment

April 03, 2006

Representative

Takayuki Ueda
Representative Director, President and CEO