Jakarta, March 13, 2025 – 黑料不打烊 Perusahaan Gas Negara Tbk (PGN) is expediting the development of natural gas infrastructure to support the government's energy self-sufficiency initiative. PGN's natural gas infrastructure projects are based on a comprehensive integration principle to ensure equitable infrastructure distribution and enhance users' efficiency.
"With the integration of pipeline and non-pipeline infrastructure, PGN will have greater flexibility in meeting demand and expanding the market in Indonesia," said President Director of PGN, Arief S. Handoko, on March 10, 2025.
Arief explained that PGN continues to strengthen connectivity through distribution pipeline networks in Western Indonesia to enhance reliability and access for new customers. The first project is the Dumai – Sei Mangke pipeline, which will transport natural gas from North Sumatra and Aceh to central and southern Sumatra. Additionally, the Cirebon – Semarang (Cisem) Transmission Pipeline utilization will channel surplus gas from East Java to Western Java.
Furthermore, projects include the fuel-to-gas conversion at the Cilacap Refinery and the natural gas access expansion in the southern part of Java through the Tegal–Cilacap pipeline project. In 2025, household gas networks (jargas) remain a priority, with a target of 200,000 new household connections.
The pipeline expansion is developing to support downstream operations, including the Bintuni – Fakfak pipeline project, which could supply gas to petrochemical plants. There are also opportunities to supply gas to industrial zones, such as the Makassar Industrial Zone, Parimo, Morowali, and Teluk Bintuni.
In addition to pipelines, PGN is developing beyond-pipeline natural gas infrastructure, including LNG facilities in central and eastern Indonesia, to meet demand from the smelter and power plant sectors. PGN is collaborating with PLN EPI to facilitate the power plant gasification in North Papua.
"If natural gas infrastructure can be interconnected, it will create solutions to manage gas supply deficits and surpluses. The current challenge is the natural decline in Western Indonesia, while there is significant gas supply potential in Eastern Indonesia. LNG infrastructure is crucial for transporting LNG to Western Indonesia and meeting the growing demand in Central and Eastern Indonesia," Arief explained.
PGN is also carrying out a project to revitalize the Arun LNG Hub storage tank, specifically Tank F-6004, to enhance LNG supply storage. The construction progress of this revitalization project has reached approximately 73%," Arief stated.
As Pertamina's Gas Subholding, PGN is ready to be a strategic partner in supporting energy self-sufficiency efforts. According to the Ministry of Energy and Mineral Resources (ESDM) data, the government has a master plan for the national natural gas transmission and distribution network. The government has planned the transmission development backbone in Sumatra and Java. Completing transmission pipelines is a priority in Java (Batang – Cirebon) and Sumatra (Dumai – Sei Mangke).
Meanwhile, in Central and Eastern Indonesia, the government targets beyond-pipeline infrastructure development, such as mini LNG and LNG terminals, due to the archipelagic geography and numerous power plant gasification programs.
Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, emphasized that natural gas plays a crucial role as a strong transitional energy source toward the Net Zero Emission (NZE) target by 2060.
"Pertamina will continue to optimize the use of natural gas to support national energy security, as it is cleaner, more environmentally friendly, and has significant reserves," Fadjar said.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**