PGN Complies with Government Order to Lower LNG Prices

PT Perusahaan Gas Negara (PGN) has declared its support for the government’s decision to lower liquefied natural gas (LNG) prices for the industrial sector, a move designed to safeguard business competitiveness and preserve jobs amid volatile global energy prices. PGN President Director Arief K Risdianto stated that the company is ready to implement all stipulated provisions and is committed to maintaining reliable gas supply to support industrial needs, strengthen national energy security, and benefit the economy.

The Ministry of Energy and Mineral Resources (ESDM) explained that industrial gas requirements are currently met through three main schemes: the Specific Natural Gas Price (HGBT), non-HGBT pipeline gas, and non-HGBT LNG. Due to differing supply characteristics and cost structures, price adjustments are applied proportionally across these segments. The government is maintaining the HGBT price at US$6.5 per MMBtu for gas used as industrial raw material and US$7 per MMBtu for fuel. Meanwhile, the average price of non-HGBT pipeline gas in West Java remains at approximately US$9.6 per MMBtu, ensuring no increase for end customers.

The adjustment specifically targets non-HGBT LNG supplies, where prices had risen due to fluctuations in global crude oil prices, a key component of LNG pricing. In response, the government has reduced the non-HGBT LNG price for industrial consumers in West Java, Banten, and DKI Jakarta from around US$20.57 per MMBtu to US$13 per MMBtu. Energy and Mineral Resources Minister Bahlil Lahadalia noted that this price was set under the President’s directive to sustain industry and protect employment, and is lower than the US$15–US$16 per MMBtu proposed by industry players. The policy aims to maintain a balance between affordable gas prices, supply certainty, sustainable national energy management, and domestic industrial competitiveness, ultimately delivering positive impacts on the economy and job creation.