PGN Advances Biomethane Integration in South Sumatra
Perusahaan Gas Negara (PGN) is moving forward with plans to incorporate biomethane into its natural gas infrastructure, a step aimed at advancing low-carbon energy use in Indonesia. The company’s corporate secretary, Fajriyah Usman, announced that a biomethane plant in North Musi Rawas, South Sumatra, is nearly complete. This project is a collaboration between PGN, PT Toyota Tsusho Indonesia (TTI), and PT KIS Biofuels Indonesia (KIS), with the goal of enhancing biomethane utilization and securing future energy supplies.
The biomethane plant, which held its groundbreaking ceremony on October 5, 2026, will process organic waste from palm oil mills to produce around 150,000 MMBTU of biomethane annually. This marks Indonesia’s first biomethane production initiative in Sumatra, a region densely populated with palm oil mills. The project is a direct outcome of a 2022 Memorandum of Understanding (MoU) between PGN and TTI, with PGN serving as both the primary buyer and transporter of the biomethane.
Under this partnership, the biomethane produced by PT KIS Toyota Tsusho Biomethane Indonesia (KTBI) will be distributed to industries like Toyota Motor Manufacturing Indonesia (TMMIN) through PGN’s existing pipeline network. Usman highlighted the significance of this initiative, stating that it represents a crucial step in introducing renewable gas from domestic sources into the national energy supply chain. The use of biomethane leverages existing natural gas infrastructure, allowing for an easier transition to low-carbon energy.
Beyond enhancing energy security, the project supports Indonesia’s decarbonization efforts by capturing methane emissions from Palm Oil Mill Effluent (POME), a liquid waste product. This aligns with the country’s Nationally Determined Contribution (NDC) targets and its goal of achieving net-zero emissions by 2060. The initiative also strengthens the palm oil sector by converting waste into valuable energy, a move that could serve as a model for other regions.