Jakarta—PT PGN Tbk, Pertamina’s Gas Subholding, is accelerating investment in the natural gas sector by allocating capital expenditure (capex) worth USD 338 million in 2025. This figure is higher than the realisation of capex in 2024, which was recorded at USD 258 million.
PGN’s Director of Strategy and Business Development, Rosa Permata Sari, in a discussion with the media on Tuesday, 11 March, explained that the investment funds will be focused on eight main strategic programmes aimed at expanding the reach of natural gas, improving infrastructure, and supporting the clean energy transition in Indonesia.
“One of the main priorities is to increase customer access through gas infrastructure development, especially for commercial and industrial customers in Java and Sumatra. In addition, we will also expand CNG and LNG retail facilities,” said Rosa.
The first strategic programme is to strengthen the customer network by building and developing gas pipeline infrastructure, including additional Jambaran-Tiung Biru (JTB) project supply. PGN also targets expansion into the hospitality, restaurant, and industrial sectors.
Furthermore, developing natural gas infrastructure and distribution is also a major focus. Some priority projects include the construction of the Tegal-Cilacap gas pipeline, the West Natuna Transportation System (WNTS)-Pemping pipeline, and infrastructure development in the Kendal Industrial Estate (KIK).
PGN will also work on household gas network (Jargas) projects in various regions in Java and Sumatra, which are included in the third strategic programme. In addition, the company will participate in developing pipeline and fuel infrastructure, including the Cikampek-Plumpang oil pipeline project, which is planned to start operating in 2027.
In the upstream oil and gas sector, PGN has allocated some of its CapEx to explore oil and gas wells in the Pangkah, Ketapang, and Fasken Blocks. The company also proposes extending the Production Sharing Contract (PSC) for the Muara Bakau Working Area and developing assets in the Muriah Working Area.
In addition, PGN is taking the LNG Trading & Services business more seriously. One of the main facilities being developed is in Arun, Aceh. PGN also plans to expand its LNG business through LNG Trading, LNG Hub & Storage, and LNG Bunkering to support the maritime sector.
PGN has also started initiatives to utilise Compressed Natural Gas (CNG) and LNG as energy sources for smelters and power plants. PGN’s subsidiary, PT Gagas Energi Indonesia, is developing the CNG Clustering concept to improve services to commercial customers.
As part of its energy transition efforts, PGN is also developing low-emission businesses, including biomethane processing and various natural gas derivative products. “We see great potential in developing biomethane and gas derivatives as part of our energy diversification strategy,” Rosa explained.
With these strategic initiatives, PGN is optimistic that it can accelerate Indonesia’s energy transformation and strengthen its position as a leader in the national natural gas supply. “We hope that with our investments, PGN can continue to encourage energy efficiency and support national energy security,” concluded Rosa. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
