PGN Aims for 1 Million Gas Network Connections in 2025

JAKARTA, investortrust.id – PT Perusahaan Gas Negara Tbk, or PGN, a-state controlled gas distributor, is targeting an additional 200,000 new household gas network connections, bringing the total to 1 million by the end of 2025.

“The expansion of jargas will be concentrated in Sumatra and Java as part of the company’s commitment to supporting the energy transition,” said PGN President Director Arief S. Handoko in a written statement on Monday, Feb 3, 2025.

As of 2024, the gas network has reached more than 815,000 households, spanning 20,000 kilometers of pipelines. “Going forward, PGN is ready to play its role and collaborate in expanding the jargas network,” he added.

Handoko emphasized that the household gas network program is a strategic solution that provides cleaner energy while reducing household expenses.

“With jargas, households can reduce their dependence on LPG and switch to a more cost-efficient and stable energy source. This program also contributes to government subsidy efficiency, saving hundreds of billions of rupiah,” he said.

Meanwhile, PGN Finance Director Fadjar Harianto Widodo stated that the company has allocated $338 million (Rp 5.51 trillion) in capital expenditure (capex) for 2025, focusing on gas infrastructure development to support the energy transition.

Approximately 67% of the capex will be allocated for gas infrastructure projects, including the household gas network program, other strategic infrastructure initiatives, and the development of low-carbon technologies such as CNG and LNG.

PGN is also targeting a 12% increase in gas distribution volume in 2025, driven by rising demand from key industrial zones in Sumatra and Java. The remaining 33% of the capex will be directed toward upstream development, including exploration in the Pangkah, Ketapang, and Fasken working areas, as well as an extension application for the Muara Bakau working area contract.