The Role of an Energy Company in the Industry and Economy

An energy company is one of the main actors in energy production and distribution, either fossil or renewable energy. These companies ensure the energy source availability for various sectors. This article talks about the role of energy companies. Therefore, read the information below. 

Types of Energy Company

The energy sector is a broader term including companies involved in energy production and distribution directly or indirectly. An energy company is categorized based on the source: renewable and non-renewable energies. 

Renewable energy sources come from wind, solar, biofuel, hydropower, and so on. On the other hand, non-renewable energy comes from petroleum products, natural gas, coal, and others. Along with those two energy sources, an energy company also includes electricity providers from non-renewables (like coal) or renewables (like renewable power plants). 

Companies in the energy sector are usually prone to factors influencing commodity prices, such as geopolitical conflicts as well as gas and oil price fluctuations. 

Read also: Chandra Asri Group's Annual Report

Key Actors in the Energy Sector

The energy sector has several key actors according to their roles, such as:

1. Petrochemical Processing and Refining Company

Companies in this sector help ensure a steady energy supply. Oil refineries receive extracted natural gas and crude oil and process it into derivative products like gasoline and diesel. Their refining capabilities also directly impact economic and market stability, as the products manufactured depend on the type of crude oil and current demand.

An example of a petrochemical processing and refining company is Aster. This Singapore-based subsidiary of the Chandra Asri Group (acquired through a joint venture between CAPGC Pte. Ltd. and Glencore) manages over 60 hectares of energy and chemical facilities, which include a refinery with a capacity of over 230,000 barrels of oil per day, an ethylene cracker with a capacity of 1.1 million metric tons per year, and other downstream chemical assets.

Aster’s core business, which focuses on petrochemical processing and refining, provides raw materials for manufacturing processes, such as ethylene, high-density polyethylene, styrene, propylene, polyols, and many more.

2. Oil and Gas Company

An oil and gas company drills, extracts, and produces crude oil and natural gas. This kind of company plays a significant role in global energy because it supplies the initial building blocks and raw materials that move the global economy. 

3. Mining Company

This type of energy company works to mine coal, which will later be used to supply electricity for industries and households. 

4. Energy Storage Company

An energy storage company develops energy-storing technologies and improves distribution efficiency. Examples of this type of energy company are PT Redeco Petrolin Utama (RPU) or PT Chandra Pelabuhan Nusantara (CPN). 

RPU is a subsidiary of the Chandra Asri Group that stores a wide variety of liquid products, including petrochemicals, petroleum, and lubricants, and it is supported by more than 70 tanks with a total capacity of 130,000 m³, a jetty with a length overall of 200 meters designed to accommodate vessels with a maximum deadweight of 35,000 DWT and a draft of 10 meters, a centralized fueling station for various types of oil tankers, international-standard safety protocols, and a customer order service system.

Meanwhile, CPN is a subsidiary that manages an operational area of more than 35.5 hectares in Cilegon, three types of docks, and more than 50 tanks with a total capacity of over 500,000 m³.

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5. Grid and Electricity Provider

This company provides and distributes electricity as well as manages the utility infrastructure to ensure the energy company can connect with final consumers.

One company working in the grid and electricity sector in Indonesia is PT Krakatau Chandra Energi (KCE). As a member of Chandra Asri Group in energy infrastructure solutions, KCE manages power generation and electrical services.  

KCE’s power generation segment is supported by a 120 MW combined-cycle gas turbine power plant (CCGT). To date, KCE has served more than 200 industrial customers and over 1,500 residential customers.

Moreover, KCE provides power plant operation and maintenance, electrical engineering, procurement, and construction (EPC), as well as overhaul services for transformers and electric motors through its power services division.

6. Renewable Energy Company

Renewable energy companies provide electricity from solar, hydro, biomass, wind, and other clean energy sources. An example of a renewable energy company in Indonesia is KCE.

Along with providing electricity services and power from combined cycle gas turbine (CCGT) plants, KCE has also expanded into the renewable energy business, offering solar panel installation services. Currently, there are four types of solar panel installation systems: on-grid, on-grid with battery backup, off-grid, and hybrid.

7. Regulatory Institutions

The energy industry consists of both regulatory institutions and energy companies. These bodies set safety standards, environmental regulations, and other rules to ensure the energy market remains safe, competitive, and sustainable.

Examples of regulatory bodies include the National Standardization Agency, which issues Indonesian National Standards (SNI); the International Organization for Standardization (ISO); the Ministry of Energy and Mineral Resources (ESDM); and others.

Entrust Your Energy Needs to a Reliable Energy Company

The energy sector plays a crucial role in the economy since almost all human activities are supported by energy industries, from raw materials to electricity. 

So, make sure you choose the right energy company to support your business’s energy needs! With Chandra Asri Group, you can fulfill your energy needs across various sectors, including downstream operations, electricity, renewable energy, and chemical storage.

All of Chandra Asri Group’s services operate in an integrated manner to ensure reliability. Our business also expands to Singapore through Aster, allowing us to reach wider customers across Southeast Asia. Contact us now and make us #YourGrowthPartner!

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