PGN Wins Auction For Special Rights For The Natural Gas Distribution Network In Batam

Photo: Special

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) has been officially appointed as the winner of the Natural Gas Network Distribution Special Rights (WJD) auction in Batam City by the Downstream Oil and Gas Regulatory Agency (BPH Migas).

This determination is contained in the Decree of the Head of BPH Migas Number 14/KD/Auction/BPH Migas/Kom/2025.

PGN Corporate Secretary, Fajriyah Usman said this decision was a strategic step for PGN in expanding natural gas services in Batam and a form of PGN's support in improving natural gas governance initiated by the Government.

PGN welcomes the trust given by the Government. We are committed to expanding natural gas infrastructure and services, especially for the household, industry, electricity and MSME sectors in Batam which have great economic potential, including support for Government programs such as Free Nutrition Food and natural gas networks for households," said Fajriyah, Monday, April 14.

Fajriyah explained, this aat, PGN has a 273 kilometer pipeline network in Batam, as well as 20 meters of regulatory/station (MR/S) and one offtake station in Panaran. This infrastructure reaches industrial and residential areas such as Tanjung Uncang, Batamindo, Kabil, Batam Center, Panbil, to Lubuk Baja.

PGN services in Batam include 6 power plants, 102 commercial and industrial customers, 76 small customers, and 5,686 households, with total gas consumption reaching around 96.9 BBTUD.

This year, PGN is targeting an additional 4,000 new household connections from the total commitment to increase the number of connections in the bidding document by approximately 16,000 household, industrial and commercial customers during the development period in 2025 - 2027.

This effort is in line with the allocation of capital expenditures in 2025 of US$338 million, which 67 percent is focused on downstream development, including gas lines, Tegal 'Cilacap pipes, as well as CNG and LNG infrastructure.

Through a subsidiary of PT Gagas Energi Indonesia, PGN also provides natural gas services in the form of CNG for areas that have not been reached by pipes, including to support the Free Nutrition Food (MBG) program in Batam.

BPH Migas said the development of WJD Batam was in accordance with regional spatial planning and was included in national priorities to encourage the use of clean energy.

"Earth gas has been used in industrial areas and Batam settlements since 2003. In the future, supplies can be sourced from the Duyung Block, Anambas, to West Natuna," added Member of the BPH Migas Committee, Wahyudi Anas.