Industrial LNG Gas Price Slashed to US$13, Pertamina Responds

PT Pertamina (Persero) has spoken out regarding the reduction in the selling price of gas, particularly Liquefied Natural Gas (LNG), for the industrial sector starting Monday, 29 June 2026. The policy to adjust the LNG price for industry to US$13 per MMBTU is intended to maintain a balance between the interests of energy providers and the sustainability of businesses. Pertamina VP Corporate Communication Muhammad Baron explained that the company, through PT PGN (Persero) Tbk as the Gas Subholding, is ready to implement all the latest provisions. He stressed that coordination is ongoing to ensure energy distribution in the West Java, Banten, and DKI Jakarta regions continues to run smoothly. “Pertamina supports the government, particularly the Ministry of Energy and Mineral Resources, in establishing a national natural gas price governance policy that has fairly considered the interests of all stakeholders. As Pertamina’s Gas Subholding, PGN is ready to support and implement this policy,” Baron stated in an official release. The US$13 per MMBTU LNG price applies only to industries in West Java, Banten, and DKI Jakarta. In addition to this LNG price, the government also confirmed that the Certain Natural Gas Price (HGBT) for seven industrial sectors remains at US$6.5-7 per MMBTU. Meanwhile, non-HGBT pipeline gas industrial users are charged an average price of US$9.6 per MMBTU. “For non-HGBT pipeline gas customers in the West Java region, the government has ensured that the gas selling price to customers will not increase, averaging US$9.6 per MMBTU. Furthermore, the LNG price for industries in the West Java, Banten, and DKI regions is also set at US$13 per MMBTU,” he said. Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia revealed that the LNG price adjustment to US$13 per MMBTU for industry was achieved by cutting the government’s revenue share and reducing operational costs at state-owned enterprises. He stated the government had coordinated with Production Sharing Contract contractors (KKKS), PT Pertamina (Persero), and PT PGN Tbk, all of whom share the burden of the price reduction. “Everyone is affected. The government’s share from the upstream sector is cut. Downstream, we also asked them to lower costs. Pertamina’s share was also reduced. So, the KKKS, the government, and PGN all face cuts,” Bahlil explained. The measure was taken after a sharp spike in LNG prices on the international market. Bahlil noted that LNG prices had touched US$23 per MMBTU, necessitating state intervention to reduce procurement costs for domestic industries. Nevertheless, Bahlil confirmed that the HGBT for seven industrial sectors has not been adjusted, remaining in the range of US$6.5 to US$7 per MMBTU. “The HGBT has been in place for the seven sectors at US$6.5 to US$7. The significant increase occurred in LNG, from US$13-14 to US$23. That is where the government took responsibility, together with upstream oil and gas, KKKS, and Pertamina, to reduce the cost. It is like saying, let’s not be too greedy for profit,” he said. The price reduction policy took effect on Monday, 29 June 2026, to provide certainty for industrial players. However, the government stressed that the adjustment is specifically for product-producing industrial sectors, not for power generation needs. “This is LNG for industry, for industries that produce products. We want to guarantee and maintain existing jobs,” he said. Meanwhile, the government is also pushing for the construction of gas transmission pipeline infrastructure to strengthen inter-regional connectivity. The Dumai-Sei Mangkei pipeline project and the integration of the East Java to West Java route are being accelerated, with a target for phased completion by 2027. “It already existed, but we are enlarging the size. So that if there is a gas surplus in Sumatra, we can divert it to Java. If there is a surplus in East Java, we can divert it to West Java,” he concluded.