PGN Aims For 1 Million Gas Connections By 2025

PT Perusahaan Gas Negara Tbk (PGN) aims to expand its household gas network (jargas) to reach 1 million connections by 2025. To achieve this goal, PGN plans to add 200,000 new connections in Sumatra and Java. PGN's President Director, Arief S. Handoko, stated that the jargas program is a strategic solution for providing clean and efficient energy to the community. This initiative not only reduces reliance on LPG but is also expected to lower household expenses and lessen the government's subsidy burden. "With jargas, people can switch to a more economical and stable energy source. This program also helps improve government subsidy efficiency by hundreds of billions of rupiah," Arief mentioned in a press release in Jakarta on Monday (February 3, 2025).

As of 2024, PGN has established over 815,000 jargas connections with a pipeline network spanning 20,000 km. Looking ahead, PGN is committed to expanding its natural gas infrastructure through partnerships with various stakeholders. PGN's Chief Financial Officer, Fadjar Harianto Widodo, revealed that the company has allocated a capital expenditure (capex) of $338 million, approximately IDR 5.3 trillion (at an exchange rate of IDR 15,700 per dollar) for 2025. Of this capex, 67% will be directed towards developing natural gas infrastructure, including the jargas program and other strategic projects, as well as low-carbon technologies like CNG and LNG.

Additionally, PGN targets a 12% increase in gas distribution volume by 2025, driven by rising demand from key industrial areas in Sumatra and Java. Meanwhile, 33% of the capex will be dedicated to upstream sector development, including exploration in the Pangkah, Ketapang, and Fasken Working Areas, as well as extending the contract for the Muara Bakau Working Area.

Tag: Capex Perusahaan Gas Negara PGN