PGN to Undertake CCS Ecosystem and CO₂ Transport Study to Support Low-Carbon Ammonia Development
Jakarta, 21 May 2026 — PT Perusahaan Gas Negara (Persero) Tbk (PGN), as the Pertamina Gas Sub-holding, strengthens its commitment to supporting the energy transition and the achievement of Net Zero Emission (NZE) targets through the signing of a Joint Study Agreement (JSA) on a Carbon Capture and Storage (CCS) technology study at IPA Convex 2026.
This strategic collaboration is being undertaken with the Pertamina Group’s Oil & Gas Holding PT Pertamina (Persero), PT Pertamina Hulu Energi (PHE), and PT Pupuk Indonesia (Persero) to develop low-carbon ammonia (blue ammonia) in Indonesia.
Under the agreement, the parties will conduct a comprehensive study to examine the technical, legal, economic, and commercial aspects related to developing a CCS ecosystem. The main focus of this synergy is to create an efficient and sustainable low-carbon ammonia supply chain, from carbon emission capture, CO₂ transportation, to injecting CO₂ into underground geological formations that are safe.
“In this CCS collaboration, PGN assumes the role of CO₂ transporter. This step is one of the key pillars in PGN’s step-out strategy to expand its business portfolio into clean energy and decarbonisation,” said Hery Murahmanta, Director of Infrastructure and Technology at PGN.
To support this initiative, PGN will optimise its assets and resources, including existing natural gas infrastructure and its capabilities in pipeline development. One of the strategies highlighted is the utilisation of the existing natural gas pipeline right of way (ROW) to develop a CO₂ transport network.
“This collaboration represents a tangible realisation of PGN’s integration of natural gas infrastructure with future technologies to curb carbon emissions. The utilisation of the existing pipeline ROW will accelerate the efficient integration of the CCS ecosystem, while also reaffirming our role as the primary CO₂ transporter going forward,” said Hery.
The joint study will map strategic regions with significant potential for developing the CCS ecosystem and low-carbon ammonia production. The initial focus areas within the study corridor include West Java and East Java, which host industrial clusters with large energy demand; in addition, the parties will assess other potentially strategic regions based on infrastructure and economic viability.
This collaboration between the Pertamina Group and Pupuk Indonesia is expected to pioneer CCS development in Indonesia. By combining PHE’s upstream sector competencies, PGN’s infrastructure strength, and Pupuk Indonesia’s fertiliser and ammonia industry capabilities, the project aims to create new economic value while strengthening national energy security in a more environmentally friendly manner.”} ) // end tool call