PGN Prepares USD 353 Million CAPEX in 2026 to Strengthen Integrated Infrastructure Development

PT Perusahaan Gas Negara (Persero) Tbk, the gas subholding of Pertamina, plans to allocate US$353 million in capital expenditure (CAPEX) in 2026, representing an increase of about 14% compared with 2025. The investment is aimed at strengthening the development of integrated natural gas infrastructure, supporting national energy security, and optimizing the role of natural gas as a transition energy source.

According to PGN President Director Arief Kurnia Risdianto, the company’s strategy in 2026 will focus on integrated, credible, and sustainable growth. PGN will emphasize operational strengthening, business portfolio consolidation, and selective expansion into value-added businesses, supported by disciplined financial management and a strong commitment to Health, Safety, Security, and Environment (HSSE) standards across all operations.

To expand reliable energy access for communities and industrial customers, PGN will allocate US$219 million of the CAPEX for the development of gas transmission and distribution infrastructure, including pipelines as well as beyond-pipeline solutions such as compressed natural gas (CNG) and liquefied natural gas (LNG). Priority projects include customer attachment programs, expansion of the household gas network in Sumatra and Java, construction of the Tegal–Cilacap pipeline, extension of the Sei Mangkei pipeline, and the development of a regasification terminal in East Java, alongside new initiatives in low-carbon businesses such as biomethane.

Meanwhile, US$134 million will be allocated to upstream activities aimed at improving exploration performance and increasing oil and gas lifting. Key programs include drilling activities in the Pangkah, Ketapang, and Fasken working areas, extension of the production sharing contract in the Pangkah block, and the implementation of 3D seismic surveys and processing. PGN also targets zero accidents under its HSSE framework and aims to reduce emissions by 35,000 tons of CO₂ equivalent, while continuing to strengthen collaboration with stakeholders to maintain competitiveness amid the increasingly dynamic energy market.

Source : Ruang Energi