PGN Prepares US$338 Million In Capital Expenditure, Focuses On Energy Infrastructure And Transition

Illustration (Photo: Doc. ANTARA)

PT Perusahaan Gas Negara Tbk (PGN) allocated a capital expenditure of US$338 million in 2025.

The funds will be used for the development of natural gas infrastructure and support the national energy transition.

"Through optimal operational management and prudent financial strategies, we believe that PGN can continue to be the main driver of the energy transition in Indonesia," said PGN President Director Arief Setiawan Handoko, Friday, January 31.

He detailed that 67 percent of capex will be allocated to expand natural gas networks, including 200,000 new connections in Sumatra and Java, which have the potential to save government LPG subsidies of up to hundreds of billions of rupiah.

"In addition to reducing LPG imports, jargas provides more efficient, clean, and sustainable energy solutions for the community," explained Arief.

Meanwhile, 33 percent of the capex are allocated for development in the upstream oil and gas segment. PGN will continue exploration in Pangkah, Ketapang, and Fasken WK Muara Bakau contracts.

"With strong innovation and collaboration, we are optimistic that we can face industrial challenges and global market dynamics to ensure PGN's contribution to Indonesia's greener energy future," said Arief.

On the other hand, PGN Finance Director, Fadjar Harianto Widodo added, PGN targets gas distribution volume growth of up to 12 percent compared to the previous year, driven by demand from major industrial estates in Java and Sumatra.

Meanwhile, the development of a strategic gas pipeline, namely the Tegal'Cilacap Pipe and the Cikampek's 'Plumpang' oil pipeline to support the distribution of fuel from TBBM Cikampek to Plumpang.

In addition, PGN continues to run the international LNG trading business according to existing contracts to strengthen its presence in the global market.

"We are facing gas supply challenges, but are optimistic that we can manage this optimally through innovation and collaboration with all stakeholders," said Fadjar.

In supporting sustainability, PGN targets to reduce emissions of 4,372 tons of equivalent CO2 by 2025 through operational efficiency and environmentally friendly technology, including the development of biomethane and diversification of gas derivative products.