PGN Confirms CNG Can Be Up to 30% Cheaper Than LPG

PT Perusahaan Gas Negara Tbk (PGN) through its subsidiary PT Gagas Energi Indonesia (PGN Gagas) continues to strengthen the utilisation of natural gas through compressed natural gas (CNG) clusters, both via gas networks (Jargas) and CNG cylinders for commercial and household customers. The use of CNG as an alternative to LPG is confirmed to be up to 20% to 30% more economical.

PGN Gagas President Director Santiaji Gunawan said that CNG development should be positioned as part of efforts to expand energy choices for the public and businesses. “We see this not as replacing one energy source with another, but rather expanding the options,” Santiaji said in Yogyakarta on Thursday (20/8/2026).

Santiaji added that CNG, as natural gas produced domestically, can save 20% to 30% compared with LPG usage. “Our research shows around 20% to 30%. And indeed what I have conveyed to customers, they also say the same thing. Because based on, for example, if they usually use the 50 kg cylinder, then compared with using the ‘other one’,” Santiaji explained.

He added that the public and businesses need access to diverse, reliable, affordable energy sources based on domestic resources. CNG is one energy option that is already available and can be developed gradually in line with government policy direction.

“Firstly, CNG compared with other energy sources, the energy is cleaner. Then it is domestic, not imported. So it is genuinely Indonesian,” Santiaji explained.

Yogyakarta is one of the most important markets in the development of PGN Gagas’s CNG business. From the customer list, Bakpia Tugu Jogja is recorded as the customer with the largest volume requirement, reaching approximately 50,000 m³. In addition, Payakumbuh Jogja absorbs around 2,000 m³, and Platinum Hotel around 1,500 m³.

In Sukoharjo, recorded customers include Bening Big Tree with a requirement of around 3,000 m³, 12 gas filling and transfer stations (SPPG) with a total requirement of around 12,000 m³, and Aston Hotel Solo around 1,500 m³. Meanwhile in Magelang, CNG services are used by two SPPG points with a volume of around 2,000 m³ and PGN Balkondes around 2,000 m³.

Based on infrastructure data for the Sleman CNG Jargas cluster, the network is supported by one pressure regulating station (PRS), DTM pipes with diameters of 180 mm and 90 mm spanning 15.9 kilometres, and five regulating stations (RS). Meanwhile, the DTR pipe network with a diameter of 63 mm reaches 125.5 kilometres. Combined, the total network length recorded in the system reaches approximately 141.4 kilometres.

In terms of customers, the gas network serves 4,545 household customers (SRT), six small customers (PK), and four commercial/industrial customers (KI). Thus, there are 4,555 customers recorded in the network.

The large number of household customers shows that natural gas utilisation in Sleman has a fairly strong market base. However, from a business perspective, the customer composition also indicates significant room for expansion in the commercial and industrial segments. Various facilities located around the network, such as hospitals, hotels, restaurants and various business activities, represent potential markets that can be developed to increase natural gas utilisation.

Santiaji emphasised that PGN Gagas will continue to develop CNG utilisation by considering market needs and infrastructure readiness. “The more diverse the energy options available, the stronger our energy resilience as a nation. CNG is present as one option that complements existing energy within the framework of the national energy mix,” Santiaji said.