PGN Secures Long-Term Gas Supply for Indonesia's Industry at IPA Convex 2026
Jakarta — PT Perusahaan Gas Negara Tbk (PGN) has strengthened the security of domestic natural gas supply through a series of strategic agreements announced at the Indonesian Petroleum Association Convention & Exhibition 2026 (IPA Convex 2026) on Wednesday 20 May 2026. The move aims to ensure energy supply continuity for the industrial sector and households amid rising gas demand. PGN, a Subholding Gas under Pertamina, is pursuing a supply mix that combines piped gas with domestically sourced LNG to bolster supply and enhance flexibility of energy distribution across regions.
Corporate Secretary Fajriyah Usman said the integration of piped gas and LNG is a key element in maintaining national energy reliability. ‘PGN continues to strengthen the integrated management of natural gas supply through a combination of piped gas and LNG sourced from within the country,’ Fajriyah said in an official statement in Jakarta on Wednesday 20 May 2026. ‘This strategy is part of the company’s efforts to sustain the delivery of natural gas energy while increasing the flexibility to meet customer needs in various regions.’
The move comes as the global energy industry dynamics push national energy companies to safeguard domestic supply continuity, and PGN has signed a number of long-term natural gas supply agreements with strategic partners. The supplies will be used for Bahan Bakar Gas (BBG) and the household gas network (jargas). In addition, PGN signed amendments and reaffirmations of PJBG for the extension of the gas supply contract from Husky-CNOOC Madura Limited (HCML).
PGN also signed Key Terms with Medco E&P Sakakemang to purchase gas from WK Sakakemang. The agreements form part of PGN’s efforts to broaden domestic gas sources for customers across sectors. The set of agreements is complemented by LNG-based supply enhancements to improve energy distribution flexibility across Indonesia. Additionally, PGN signed a Heads of Agreement for the Abadi Masela LNG purchase as part of long-term LNG supply security. ‘According to Fajriyah, a combination of pipeline-based gas and LNG from various sources will strengthen PGN’s ability to deliver natural gas to growth centres and new development areas,’ she said. ‘These collaborations further reinforce PGN’s role as an infrastructure and natural gas supply integrator for the nation.’ ‘Through integrated supply management, PGN alongside the Pertamina Group seeks to safeguard national energy reliability while supporting economic growth and the transition to lower-emission energy,’ she concluded.