PGN Reaffirms Commitment to Developing Low-Carbon Energy
Jakarta, CNBC Indonesia — PT Perusahaan Gas Negara (Persero) Tbk (PGN), Pertamina’s gas subholding, is strengthening its role in supporting Indonesia’s energy transition by developing natural gas infrastructure, expanding energy services and pursuing decarbonisation and low-carbon energy initiatives.
The commitment is being put into practice by strengthening the company’s business and operations while improving energy efficiency and reducing emissions. By August 2026, the Gas Subholding had cut emissions by 29,574.87 tonnes of CO₂ equivalent (tCO₂eq), 35.3% above the target set for that period.
PGN Corporate Secretary Fajriyah Usman said natural gas has an important role as a transition energy source, meeting national energy needs while supporting a shift towards a lower-carbon energy system.
“PGN continues to optimise the use of natural gas as a transition energy source by strengthening infrastructure and expanding services across various sectors. At the same time, we are developing decarbonisation initiatives as part of our efforts to support business sustainability and Indonesia’s energy transition,” Fajriyah said, as quoted on Tuesday (3 November 2026).
PGN manages an integrated natural gas service network, including transmission and distribution pipelines as well as beyond-pipeline options such as compressed natural gas (CNG) and liquefied natural gas (LNG).
This infrastructure underpins the optimisation of natural gas use and wider access to energy for industry, commercial users, households and power plants.
Alongside strengthening its natural gas business, PGN is exploring and developing low-carbon energy opportunities, including biomethane produced from palm oil mill effluent (POME).
PGN is also exploring studies of carbon capture and storage (CCS) technology as a potential option to support the development of a low-carbon ammonia supply chain.
These initiatives are being developed in stages, taking into account technological readiness, economic viability, and the needs and characteristics of the energy market. This approach forms part of PGN’s strategy to develop new business opportunities while preparing infrastructure to support the use of low-carbon energy in the future.
In addition to business development, PGN is implementing decarbonisation programmes by improving operational efficiency and optimising energy use. The emissions reduction achieved by August 2026 will provide a basis for the company to step up its decarbonisation initiatives over 2027–2030.
For these efforts, PGN received the “Most Outstanding Natural Gas Transition & Carbon Emission Reduction Excellence” award at the Industry Award 2026.
The award took into account several factors, including business and natural gas infrastructure performance, the role of natural gas as a transition energy source, carbon-emissions reduction initiatives, and the development of decarbonisation innovations.
The recognition acknowledges PGN’s efforts to develop a natural gas business that not only meets energy needs but also considers sustainability and opportunities to reduce emissions.
“Through coordination with the government, cooperation across the Pertamina Group and collaboration with various stakeholders, PGN will continue to strengthen natural gas services while gradually developing low-carbon energy business opportunities in line with market needs. We hope these steps will create added value for customers, the company and the public, while supporting the direction of Indonesia’s energy transition,” Fajriyah said.