Ecobiz.asia – Indonesia’s state-owned gas company PT Perusahaan Gas Negara Tbk (PGN) has started building a biomethane injection point in Pagardewa, South Sumatra, as part of its strategic renewable energy development initiative.
The injection point will serve as a facility where biomethane is fed into the existing natural gas network, allowing it to be used in the same way as natural gas for households, industries, retail businesses, and land transportation.
PGN President Director Arief Kurnia Risdianto said the Pagardewa project marks an important step in expanding the company’s renewable energy portfolio and strengthening its role in the national energy transition.
“The biomethane project will expand PGN’s renewable energy portfolio, create new revenue streams, and support the company’s ESG targets,” Arief said in Jakarta on Thursday (Nov. 6, 2025).
The Pagardewa injection facility will be equipped with a Pressure Reducing System (PRS) that can also accommodate other gas supply sources, including coalbed methane (CBM) and stranded gas. PGN plans to supply around 1.2 BBTUD of biomethane through the facility.
Under the project, PGN will utilize palm oil mill effluent (POME) to produce biogas, which will then be upgraded into biomethane and compressed into renewable natural gas before being injected into the gas pipeline network.
Biomethane has similar characteristics to natural gas, enabling it to be distributed and used as a clean energy source across various sectors. The project is expected to help reduce greenhouse gas emissions by around 29,688 tons of CO₂e per year from fuel conversion and 204,867 tons of CO₂e per year from methane capture from POME.
“There are many palm oil processing plants across Sumatra, and PGN already has existing gas infrastructure in the region, including the SSWJ Transmission Pipeline and Pagardewa Gas Compressor Station. This makes the development of biomethane a strategic step to expand clean and renewable energy availability,” Arief said. ***
