PGN Expands Natural Gas Access in Yogyakarta with CNG Clustering
Jakarta. Perusahaan Gas Negara (PGN) is expanding natural gas access for Yogyakarta households with its compressed natural gas (CNG) clustering.
PGN has launched the pilot project of CNG clustering in the Yogyakartan regency of Sleman. This system enables safe and reliable distribution of natural gas to household distribution networks, without requiring the presence of a main transmission pipeline network. Deputy Energy Minister Yuliot Tanjung had checked on the project during a Sleman trip.
According to Yuliot, the innovation aligns with the government's continued push for the use of natural gas as a cleaner, more efficient, and domestically sourced transitional energy source to strengthen national energy security. The government has aimed to develop approximately 350,000 household connections to natural gas a year between 2026 and 2029 through various funding schemes.
"The use of CNG and city gas networks boost household efficiency. They are also practical and safe," Yuliot was quoted as saying in a press statement.
Its use can also reduce subsidized liquefied petroleum gas (LPG) consumption, thereby slashing subsidies and imports
PGN President Director Arief K Risdianto said that the Sleman pilot project demonstrated how the CNG clustering is applicable to other parts of the country. He went on to say that PNG had adjusted the high-pressure CNG to flow safely to household kitchens.
"We can assure you that the flow of natural gas to your kitchens are safe for daily use as we embrace strict supervision and pressure regulation technology," Arief said.
To date, PGN has built more than 4,500 household connections in Sleman, with a distribution pipeline network spanning over 141 kilometers. The average natural gas distribution to Sleman gas network customers has reached approximately 84,000 cubic meters (m³) per month. This figure is equivalent to the use of approximately 64 metric tons of LPG per month.
The use of the gas network in the Sleman region is not limited to households but will continue to be expanded massively to strengthen the local economy, including small businesses, restaurants, hotels, and healthcare facilities such as hospitals.
Beyond pipeline service, PGN is optimizing synergies with its subsidiary, PT Gagas Energi Indonesia (Gagas), which already has a portfolio in managing non-pipeline gas distribution. PGN, through Gagas, manages and operates 14 gas stations (SPBGs) and 4 mobile refueling units (MRUs), which serve various CNG consumers in the transportation, commercial, and industrial sectors across Indonesia.
One commercial customer that has adopted CNG is Rumah Makan Payakumbuah Yogyakarta, with CNG consumption reaching 2,000-2,300 m³. The operational benefits of this restaurant include energy cost efficiency. Compared to its previous energy consumption, using CNG can save approximately 30-33%.
"PGN has extensive experience in managing natural gas, both through pipelines and non-pipeline modes such as CNG and LNG. As Pertamina's Gas Subholding, we are ready to support the government's efforts to formulate targeted CNG utilization and play an active role in the national energy diversification target," Arief said.
Tags: Keywords:Related Articles
Indonesia Develops Gas Storage Tech That Could Save $1.5B in LPG Subsidies
BRIN says its new natural gas storage technology could cut LPG subsidies by up to $1.5 billion a year.Indonesia Eyes CNG as LPG Alternative After China Testing Nears Finish
Indonesia expects to complete trials of 3-kilogram CNG cylinders soon, a key step toward reducing its dependence on costly LPG imports.Government Targets 160,000 Household Gas Connections as Safety Assured
Indonesia targets 160,000 household gas connections in 2026 as it expands CNG networks to cut LPG imports.PGN Expands Natural Gas Access in Yogyakarta with CNG Clustering
PGN is expanding natural gas access for Yogyakarta households with its compressed natural gas (CNG) clustering.PGN's GasKita Customers Get Kitchen Renovations
PGN is holding kitchen renovations for GasKita customers.No CNG Allocation in 2027 Budget as Indonesia Seeks to Cut LPG Imports
Indonesia's 2027 budget keeps LPG subsidies unchanged, with no dedicated funding for the planned CNG transition.Indonesia’s Plan to Replace LPG With CNG Runs Into Pipeline Problem
Indonesia’s push to replace LPG with CNG could cut imports and subsidies, but analysts warn infrastructure gaps remain.Indonesia Tests 3-Kilogram CNG Canisters in China as Alternative to Subsidized LPG
Indonesia is testing small compressed natural gas canisters as a cheaper alternative to imported subsidized LPG.Indonesia Explores CNG as Alternative to Imported LPG
Indonesia tests household CNG cylinders as a potential substitute for imported LPG to reduce subsidies and import costs.The Latest
UN Boss Commends Indonesian Forest Protection Despite Persistent Haze Problem
Outgoing UN boss António Guterres' comment comes at an ironic time amid Indonesia's struggle with forest fires.Indonesia Must Benefit Most From Its Minerals: UN Chief
Outgoing UN chief António Guterres says that Indonesia must "retain a far greater share of the economic value" from its minerals.Chandra Asri Group Receives Trade Finance Excellence Award, Reinforcing Its Role in Indonesia’s Industrial Development
Chandra Asri Group receives the Trade Finance Excellence Award at CIMB Niaga Business Summit 2026.AEON MALL Deltamas Brings 11 Sports and Creative Competitions to AEONLYMPIC 2026
AEON MALL Deltamas hosts AEONLYMPIC 2026, featuring 11 sports and creative competitions, with more than 3,100 participants.Indonesian Stocks Extend Losses for Third Day, Fall 3.64% to 4,996
Indonesian stocks fell 3.64% on Monday, extending losses for a third straight session amid MSCI concerns and tighter trading limits.Most Popular
