Antara News·Indonesia·Tuesday, October 6, 2026 at 08:44 AM UTC

PGN to integrate biomethane into natural gas infrastructure

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Kelik Dewanto, Cindy Frishanti Octavia

Jakarta (ANTARA) - Perusahaan Gas Negara (PGN) is preparing to integrate biomethane into its natural gas infrastructure to promote the use of low-carbon energy in Indonesia.

PGN Corporate Secretary Fajriyah Usman said in Jakarta on Tuesday that the development of biomethane using palm oil mill waste in South Sumatra is nearing completion.

For this project, PGN is collaborating with PT Toyota Tsusho Indonesia (TTI) and PT KIS Biofuels Indonesia (KIS) to optimize biomethane utilization and ensure future domestic energy supplies.

PGN attended the groundbreaking ceremony for the biomethane plant developed by TTI and KIS on Monday (October 5).

The facility utilizes organic palm oil waste and targets annual biomethane production of approximately 150,000 MMBTU.

Usman noted that this is the first initiative in Indonesia to produce biomethane in Sumatra, a region with a high concentration of palm oil mills.

The project also represents a concrete outcome of the 2022 Memorandum of Understanding (MoU) between PGN and TTI regarding biomethane development in Indonesia.

Under this partnership, PGN acts as the offtaker, or primary buyer, of the biomethane.

Additionally, PGN serves as the transporter. The biomethane produced by PT KIS Toyota Tsusho Biomethane Indonesia (KTBI), a joint venture between KIS and TTI, will be distributed to Toyota Motor Manufacturing Indonesia (TMMIN) and other industries through PGN’s pipeline network.

“We appreciate TTI and KIS for initiating the construction of this biomethane facility. For PGN, this represents a crucial step in introducing renewable gas from domestic sources into the national energy supply chain,” Usman said.

“PGN stands ready to provide support through our existing infrastructure and commercial capabilities, enabling the industrial sector to utilize biomethane,” she added.

Biomethane utilization leverages infrastructure already in place for natural gas, allowing customers to switch to biomethane with minimal infrastructure modifications.

Beyond enhancing domestic energy security, the use of biomethane complements natural gas consumption, which continues to rise alongside growing decarbonization efforts in the industrial sector.

Using Palm Oil Mill Effluent (POME), a liquid waste product from palm oil mills, as a feedstock for biomethane offers significant environmental benefits.

Methane that would otherwise be released into the atmosphere can be captured and processed into energy, thereby helping reduce greenhouse gas emissions and supporting the achievement of Nationally Determined Contribution (NDC) targets and the 2060 net-zero emissions goal.

The project also strengthens downstream development in the palm oil sector by transforming waste into economically valuable energy.

According to Usman, biomethane plays a strategic role in supporting energy self-sufficiency and industrial decarbonization.

“Once production begins, industries such as TMMIN will gain access to low-carbon energy, bolstering their competitiveness amid global demand for green supply chains. We hope this collaborative model can be replicated in other palm oil-producing regions,” she added.

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