Strengthening Gas Infrastructure, PGN to Allocate US$ 353 Million Capex in 2026
PT Perusahaan Gas Negara (Persero) Tbk (PGN), operating as Pertamina’s gas sub-holding, has allocated capital expenditure of US$ 353 million for 2026, representing an increase of approximately 14% compared to 2025. This allocation is aimed at strengthening the development of integrated natural gas infrastructure and supporting national energy security, whilst optimising the role of natural gas as a transition energy source.
PGN Chief Executive Officer Arief Kurnia Risdianto stated that the company’s strategy for 2026 will focus on integrated, credible, and sustainable growth.
“PGN’s strategic direction for 2026 is focused on operational strengthening, consolidation of the business portfolio, and selective expansion of high-value-added business. All of this is balanced with disciplined financial strategy and full commitment to implementing Health, Safety, Security and Environment (HSSE) aspects across all operational lines,” Arief said.
To deliver energy that is more accessible and reliable to the public and industrial customers, PGN is allocating US$ 219 million in capex for the development of transmission and distribution infrastructure, including both pipelines and beyond-pipeline solutions such as Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG).
Priority projects include customer attachment, expansion of household gas networks (jargas) in Sumatera and Java regions, construction of the Tegal-Cilacap Pipeline and extension of the Sei Mangkei Pipeline, as well as development of a regasification terminal in East Java. Additionally, PGN is continuing to develop low-carbon business initiatives as a long-term growth engine, including biomethane projects.
On the upstream side, PGN has allocated US$ 134 million in capex to optimise exploration performance and enhance oil and gas production. Primary programmes include drilling activities in the Pangkah, Ketapang and Fasken Working Areas, contract extension of working agreements (KKKS) in the Pangkah Working Area, and execution of 3D seismic surveys and processing.
“To ensure achievement of operational performance targets, we are strengthening HSSE aspects with a target of zero accidents. Meanwhile, for our sustainability commitment, we are targeting emissions reduction of 35,000 tonnes of CO2 equivalent,” Arief emphasised.
Collaboration with all stakeholders is key to navigating the dynamics and fluctuations of the energy market. PGN continues to strengthen synergies with all key stakeholders to maintain transparency, align understanding regarding market expectations, and ensure promising business prospects going forward. With a strong foundation of synergy, PGN is confident it can continue to be adaptive and competitive in facing the increasingly dynamic challenges of the energy industry.