PGN Accelerates Renewable Energy Initiatives through Biomethane and CNG Projects

Strategic Development of Biomethane

PT Perusahaan Gas Negara Tbk (PGN) has commenced construction of an injection point in Pagardewa, South Sumatra, as part of its strategic Biomethane development project. This initiative is part of PGN's broader strategy to expand its renewable energy portfolio and provide cleaner energy solutions for various sectors. The Biomethane project is expected to supply 1.2 billion British thermal units per day (BBTUD) through the new injection point ¹

Technical Capabilities and Integration

The Pagardewa injection point includes a Pressure Reducing System (PRS) that will enable the integration of various gas sources, including Biomethane, coalbed methane (CBM), and stranded gas. This infrastructure flexibility positions PGN to capitalize on multiple clean energy opportunities while enhancing its existing gas network capabilities. PGN's CEO, Arief Kurnia Risdianto, emphasized that Biomethane can be used similarly to natural gas across various applications, including household, industrial, retail, and transportation sectors ¹

CNG Distribution Expansion

In a complementary effort, PGN has significantly ramped up its Compressed Natural Gas (CNG) distribution through its subsidiary, PT Gagas Energi Indonesia (PGN Gagas). As of September 2025, the company has successfully distributed 10.85 BBTUD of CNG, serving approximately 600 customers across diverse sectors. This expansion addresses the needs of customers not yet connected to the natural gas pipeline network, providing them with a cleaner, more efficient energy solution ²

Environmental and Market Impact

PGN's dual strategy of developing Biomethane and expanding CNG distribution aligns with Indonesia's environmental goals, particularly in achieving Net Zero Emission targets. The company's initiatives not only enhance energy accessibility but also support the transition to cleaner energy sources. Corporate Secretary Fajriyah Usman noted that CNG serves as a practical solution for customers seeking efficient and environmentally friendly energy options ²